High Tide Inc: Cantor's Updated Model For NuLeaf CBD Deal

The Analyst

In a recent analyst note, Pablo Zuanic, from Cantor Fitzgerald, remained Neutral on High Tide Inc. (NASDAQ: HITI.TO) and established a price target of C$7.75 for the stock.

The Thesis

Zuanic remains Neutral on High Tide shares and lowered the 12-month price target to C$7.75 from C$8.75 in part due to sectoral derating and increased proforma share count.

“We now factor in our estimates of the all-share deal for CO-based operator, NuLeaf Naturals, which closed on November 29. The current sales run rate for NuLeaf is above US$19 Million and EBITDA margins of 27% are well above the HITI.TO margins of 3% for the July Quarter,” noted the analyst.

Zuanic explained that together with other deals closed in October (Blessed in the UK and DankStop accessories), High Tide has completed over C$60 million worth of acquisitions since the end of July, resulting in about 6.4 million shares being issued on a base of 51 million.

Zuanic …

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