High Tide Faces 'Tough Market Climate' For Retail, Analyst Lowers Price Target On Cannabis Stock
High Tide Faces 'Tough Market Climate' For Retail, Analyst Lowers Price Target On Cannabis Stock
Cantor Fitzgerald's Pablo Zuanic kept a 'Neutral' rating on High Tide stock lowering their price target to CA$2.80 ($2.18) from CA$4.45. High Tide (NASDAQ:HITI) recently closed a $10 million deal equity financing deal.
涨潮（纳斯达克股票代码：HITI）最近 完成了一笔1000万美元的股权融资交易。
The agreement includes the exercise in full of the underwriter's over-allotment option. In relation to the offering, the Canada-based company issues a total of 4.96 million units at a price of $2.32 per unit, for aggregate gross proceeds of $11.5 million.
该协议包括全面行使承销商的超额配股权。就此次发行而言，这家总部位于加拿大的公司共发行496万套，价格为每单位2.32美元，总收益为1150万美元。
The company noted it plans to use the net proceeds from the offering for constructing and opening new retail cannabis stores, debt repayments, and standard corporate practices.
该公司指出，计划将本次发行的净收益用于建造和开设新的零售大麻商店、偿还债务和标准的公司惯例。
The Analyst
分析师
Cantor Fitzgerald's Pablo Zuanic kept a 'Neutral' rating on High Tide stock lowering their price target to CA$2.80 ($2.18) from CA$4.45.
坎托·菲茨杰拉德的 Pablo Zuanic 维持High Tide股票的 “中性” 评级，将其目标股价从4.45加元下调至2.80加元（2.18美元）。
The Thesis
论文
The analyst said he lowered the price target to address the increased share count and higher operations risks.
这位分析师表示，他下调了目标股价，以解决股票数量增加和运营风险增加的问题。
High Tide stock fell 25% over the last week, compared to AdvisorShares Pure Cannabis ETF (NYSE:YOLO) which gained 5%.
上周涨潮股价下跌了25％，相比之下AdvisorShares 纯大麻 ETF纽约证券交易所代码：YOLO）上涨了5％。
The company, headquartered in Calgary, Alberta, aims to reach 150 stores by the end of the year, through mergers and acquisitions and organic openings. Through pricing strategy and discount loyalty offerings, High Times expects to continue gaining retail share in Canada. It also has plans to launch the recently acquired Fastendr kiosk technology by the end of the year, and projects for its private label program to account for 20-30% of marijuana retail sales.
该公司总部位于艾伯塔省卡尔加里，目标是通过兼并和收购以及有机开业，到今年年底达到150家门店。通过定价策略和折扣忠诚度产品，High Times预计将继续获得加拿大的零售份额。它还计划在今年年底之前推出最近收购的Fastendr自助终端技术，并预计其自有品牌计划将占大麻零售额的20-30％。
Based on Cantor Fitzgerald's assessment, there are around 3,300 cannabis stores in Canada, with a density of 85 stores per 1 million people on average, being more than in most U.S. states (except for Colorado, Oregon, and Oklahoma).
根据坎托·菲茨杰拉德的评估，加拿大大约有3,300家大麻商店，平均密度为每100万人中有85家门店，超过了美国大多数州（科罗拉多州、俄勒冈州和俄克拉荷马州除外）。
"While we understand HITI's consolidation strategy, with 129 stores, the company is still only 4% of the total store count.," Zuanic said.
祖安尼奇说：“尽管我们了解海通的整合战略，拥有129家门店，但该公司仍仅占门店总数的4％。”
In addition, with marijuana price deflation in Canada, the analyst believes that "this is a tough market climate for retailing."
此外，随着加拿大大麻价格的通缩，分析师认为 “对于零售而言，这是一个艰难的市场环境。”
"While the valuation is seemingly attractive, given the challenges in the overall cannabis market in Canada, and specifically in retail, we are not comfortable with the risk/reward here and prefer to remain Neutral," Zuanic said.
“尽管考虑到整体挑战，估值似乎很有吸引力加拿大的大麻市场，特别是零售业，我们对这里的风险/回报不满意，宁愿保持中立，” 祖安尼奇说。
The Price Action
价格走势
High Tide shares traded 0.65% higher at $1.56 per share during Monday's pre-market session.
在周一的盘前交易中，High Tide股价上涨0.65％，至每股1.56美元。
Photo: Courtesy of chuck herrera from Pixabay
照片：由 Pixabay 的查克·埃雷拉提供
