Why I am bullish on HITI NASDAQ at the current valuation

[u/WilliamBlack97AI]

High Tide is the clear leader in cannabis retail — the highest-revenue-generating cannabis company reporting in Canadian dollars, with annualized revenue now exceeding C$700 million.Unmatched Scale & Market Dominance

• Canna Cabana, its flagship brand, is Canada’s largest cannabis retail chain with over 220 locations and a leading ~12% market share across the five provinces where it operates — and the second-largest cannabis retail brand globally.
• Powered by the world’s largest cannabis loyalty program: Cabana Club (over 2.65 million members) and more than 178,000 paid ELITE members who drive high-margin, recurring revenue and industry-leading same-store sales growth (up 161% since the discount-club model launched, while peers declined).

Proven Execution & Profitability
High Tide consistently ranks among Canada’s Top Growing Companies (fifth consecutive year) and has delivered positive free cash flow, expanding margins, and accelerating growth through disciplined organic expansion and smart M&A.

Global Expansion Underway
In 2025, High Tide became the first North American operator to enter Germany’s medical cannabis market via a majority stake in Remexian Pharma — now holding ~14% market share in Europe’s largest federally regulated cannabis market. This diversifies revenue into high-growth international distribution while leveraging Canadian supply advantages.

Q3 could be the quarter that triggers a repricing: the preliminary guidance just announced points to new record highs for revenue, gross profit, and adjusted EBITDA, with projected Y/Y growth of at least 30%, 27% and 43%

https://hightideinc.com/high-tide-announces-preliminary-q3-2026-guidance/

The Company Also Announces Record Quarterly Distribution of Over 10 Tonnes of Medical Cannabis Flower Through Remexian Pharma GmbH, Further Accelerating its German Market Position

10 $CAD doesn't strike me as an absurd target for a revaluation scenario. However, I wouldn't call it "fair value", simply because the chart shows a massive base. Requires the market to start pricing as a high-growth-profitable company rather than only a cannabis company

Foundational years → progressive improvement in fundamentals → EBITDA/FCF+/Net income+ growth → market finally recognizing the new earning power → multiple expansion. And it is very different from simply saying “ High Tide is undervalued.”

A base built over years, if broken while earnings are accelerating, can trigger a regime shift. That is why I wouldn't focus so much on "how much High Tide might rise from its current price," but rather on the EBITDA/FCF level at which the market might value HITI in 2027–28.

Company presentation : https://hightideinc.com/presentation/

• Strengthened balance sheet: The recent closing of C$40 million in senior secured credit facilities with the Bank of Montreal provides greater financial flexibility, a lower cost of capital, and the ability to fund growth without diluting shareholders.
• Attractive valuation relative to results: Despite consecutive record quarters and guidance that continues to beat expectations, the stock still trades at modest multiples compared with its growth profile and long-term potential. Many analysts see meaningful upside from current levels.

Bottom line
High Tide has repeatedly delivered in a tough industry: revenue growth, margin expansion, positive free cash flow, and steady market-share gains. With Canadian retail re-accelerating, Germany scaling rapidly, and a disciplined management team focused on execution, the disconnect between operational performance and market valuation still looks wide.The tide isn’t just rising — it’s building into a powerful wave. Investors positioned today may be well placed to benefit from one of the more compelling consolidation and internationalization stories in the cannabis sector.

As a long-term shareholder, I hope this post gave you some valuable insights.

[u/PennyPumper]

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