Echelon positive on High Tide after Q4 earnings beat
31/01/2024 12:05
** Brokerage Echelon Capital Markets views Canadian cannabis
co High Tide's HITI.V Q4 results positively after profit beat
** Co reported quarterly adj profit of 5 cents per share
compared with Street estimate of a loss of 4 cents per share -
LSEG
** Brokerage says co is well positioned to remain leading
Canadian retailer and to execute consolidation opportunities in
the country due to positive free cash flow (FCF) and record $30
mln Q4 end cash balance
** "The company's discount club retail strategy continues to
be extremely effective at winning market share in Canadian
retail," - Echelon
** Same store sales, a key metric for retail, grew 13% YoY
and co maintains a healthy organic growth profile indicating
that current market opportunity retains room for further organic
growth, says Echelon
** "With High Tide's growing business and FCF generation,
the company has financial flexibility to pursue several growth
initiatives in the subsequent periods," - brokerage
** 4 of 4 brokerages covering the stock rate it "buy" or
higher; their median PT is C$5 - LSEG
** HITI stock has risen 15% so far this year
(Reporting by Kabir Dweit)
((Kabir.Dweit@thomsonreuters.com))