High Tide (HITI) announced Monday that it has entered into private label partnerships with Loosh Inc., a private manufacturer of cannabis edibles and finished products, and Heritage Cannabis Holdings, a vertically integrated cannabis supplier.
High Tide is a retail-focused cannabis company bolstered by the manufacture and distribution of consumer accessories. (See High Tide stock charts on TipRanks)
Pending registration approval, Heritage and Loosh will manufacture High Tide’s “Cabana Cannabis Co.” branded shatter and THC gummy candies, respectively.
High Tide president and CEO Raj Grover said, “I am excited to announce High Tide’s new white label rollout which has been in the works for quite some time.”
The cannabis 2.0 products will be distributed in Ontario, Manitoba, Saskatchewan, and Alberta, with the potential to eventually expand to other Canadian jurisdictions.
On September 13, Roth Capital analyst Scott Fortune initiated coverage of HITI with a Buy rating, and a C$15.22 price target. This implies 59.6% upside potential.
Fortune said in a research note that High Tide’s one-stop-shop strategy and significant retail store expansion to 200 stores in 2023 drives top-line growth. He added that a recapitalized balance sheet leverages M&A to add store growth and global e-commerce opportunities, with U.S. legalization optionality.
Consensus among Wall Street analysts is that HITI is a Moderate Buy, based on two Buys. The average High Tide price target of C$15.11 implies 58.4% upside potential to current levels.
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