The Globe and Mail reports in its Thursday, Sept. 17, edition that TD Cowen analyst Derek Lessard has reiterated his "buy" ranking and $6.50 share target for High Tide. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $5.33. Mr. Lessard calls High Tide his "Canada Best Idea" in cannabis. He says in a note: "The company has leading retail share, best-in-class operating metrics, and several underappreciated growth levers. With the stock down more than 30 per cent over the past year and trading at a 20-per-cent discount to its two-year average on forward consensus EV/EBITDA, we see meaningful upside from here.
High Tide's retail position and industry-leading KPIs are supported by hard-to-replicate advantages. Cabana Club is a resilient loyalty platform that has driven meaningful share gains, while multiple margin levers and a long runway for store growth should support continued earnings momentum. Remexian adds a second growth engine that should contribute incremental earnings and help drive a valuation rerating over time." Mr. Lessard says investors appear to be "overlooking just how consistently High Tide continues to outperform peers."
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