High Tide (TSE:HITI) was already a big deal in cannabis stocks, thanks to its status as the second-largest cannabis retailer in North America as measured by store count. And now, it’s taking aim at the top slot by setting up a new expansion effort. Shares didn’t move in response as the markets are closed for Canada Day—on that note, happy Canada Day to all our Canadian readers!—but it’s a pretty big move nonetheless.
High Tide is set to open two new stores under the Canna Cabana name, one in Alberta, and one in Saskatchewan. These will be the 175th and 176th locations opened, but the move will give High Tide that much more to work with. As noted previously, it’s the second-largest chain by store count, but it’s also the largest non-franchised cannabis retail chain in Canada.
Reports suggest that the Saskatchewan location will be in a former cannabis store in Emerald Park, while the Alberta location will hit in Cochrane. Cochrane has been enjoying a bit of a renaissance in recent years, thanks to a five-year overall growth rate of 34.31%.
A “Disciplined” Growth Strategy
Despite the clear impetus to grow, High Tide isn’t frantically opening locations just to add to its count. In fact, with the industry facing a growing “shakeout,” at last report, High Tide means to keep its growth strategy quiet and producing.
For instance, a new plan to expand into the United States has been somewhat back-burnered, as new legislation that would better protect cannabis sales is a bit stalled. That’s likely a smart move for High Tide, and one that will reward it and its shareholders accordingly.
Is High Tide a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:HITI stock based on three Buys assigned in the past three months, as indicated by the graphic below. After a 82.53% rally in its share price over the past year, the average TSE:HITI price target of C$6.40 per share implies 111.12% upside potential.
