HITI - High Tide: Higher Margins Are Now The Base Scenario

2024-06-14 01:59:03 ET

Summary

• High Tide reported Q2 results, showing slow growth, explained by underlying weaker industry sales. The company still continues to capture market share.
• Recent quarters show incredibly great margin leverage, making higher margins now my base scenario. I previously noted the great importance of raised margins.
• HITI's market share growth prospects and increasing margins fueled further by private label sales growth continue to be undermined by the current valuation.

High Tide Inc. ( HITI ), the Canadian cannabis retailer behind the Canna Cabana brand, reported Q2/FY2024 results on the 13th of June after market close. The report shows slower revenue growth than previously with a stable sequential adjusted EBITDA margin, representing a solid performance when looking at underlying factors....

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