Shares Of Extreme Tide “might Merely Double”, This Analyst Says

Beacon Securities analyst Doug Cooper maintained a “Buy” rating and raised his aim value for Extreme Tide (Extreme Tide Stock Quote, Chart, Info, Analysts, Financials TSXV:HITI) to $7.50 (from $6.50) in an Oct. 15 change, following what he known as “doc quarterly outcomes and accelerating momentum” all through the company’s Canadian operations.

Extreme Tide, Canada’s largest cannabis retailer, operates 207 Canna Cabana outlets all through 5 provinces. With 16 new openings this 12 months, the company is on observe to reach the upper end of its objective of 20–30 new outlets in calendar 2025 and continues to give attention to higher than 300 nationwide. Since adopting a membership-based low price membership model in 2021, Extreme Tide has grown to higher than 2.0 million Cabana Membership members and over 10,000 ELITE subscribers.

For the third quarter ended July 31, 2025, Extreme Tide reported doc earnings of $149.7-million, up 14% year-over-year and 9% sequentially, with its Canadian brick-and-mortar part, now 97% of consolidated earnings, up 18% year-over-year.

Cooper talked about the quarter confirmed “very optimistic” key effectivity indicators, along with same-store product sales progress of seven.4%, gross margin of 26.8% (up 120 basis components from Q2), internet income of $0.8-million, and continued membership progress. Cabana Membership members rose 39% year-over-year to 2.15 million, whereas ELITE subscribers jumped 102% to 115,000, with the conversion value rising to 5.3% from 3.7% remaining 12 months.

Extreme Tide ended the quarter with $64-million in cash and a strengthened steadiness sheet, part of which funded its post-quarter 51% acquisition of Germany-based Remexian.

“This transaction simply isn’t solely accretive however moreover provides a extremely strategic foothold in Europe,” Cooper talked about.

He added that all present KPIs “current a corporation that’s rising, growing market share and margins, and doing so with sturdy financial flexibility.”

“On the once more of the Q3 outcomes, we’re elevating our FY25 forecast, significantly our EBITDA forecast to $36-million (from $29-million), pushed by better-than-expected profitability from its Canadian cannabis part along with two months of contribution from Remexian,” Cooper talked about.

He talked about the company’s evolution stays in early phases, predicting further commerce consolidation and the introduction of private-label merchandise, which can materially enhance margins.

“We think about shares of Extreme Tide might merely double over the next couple of years simply by producing about 25% of Canadian cannabis earnings by way of private label,” he talked about.

Cooper talked about that Extreme Tide should do $36.4-million in Adjusted EBITDA on earnings of $587.5-million in fiscal 2025, enhancing to $55.6-million on earnings of $768.6-million in fiscal 2026.

“With a strong steadiness sheet, the number-one retail place in Canada, and numerous progress and margin enlargement initiatives underway, we reiterate our Buy rating and raise our aim to $7.50.”

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