In a recent note, Pablo Zuanic from Cantor Fitzgerald provided an update of his environment model for Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWD) an independent adult-use cannabis retailer with a focus on the Canadian market.
Zuanic remained Neutral on shares of FAF and changed its 12-month price target to CA $2.70 from CA $2.60.
Zuanic noted FAF disclosed a 10% drop in same-store sales for the July quarter compared with 18% growth for competitor High Tide Inc. (NASDAQ: HITI) (TSXV: HITI).
“FAF began the shift to discount loyalty later than HITI and management said sales were up 10% in July MoM. FAF management is confident that a slew of recent changes will lead to a sales ramp up. The stock now trades at 0.5x CY23 sales,” Zuanic said.
According to Zuanic the company could be “gradually and reluctantly joining the discount parade, but Nova and HITI are more advanced).”
Retail: New Strategy, Sales Up
For the …