Planet 13's Expansion Plans, 'Strong' Q1, Branded Products Drive Canaccord's Bullish Stance

Canaccord Genuity slightly revised its estimates for the Las Vegas, Nevada dispensary Planet 13 Holdings Inc PLNHF following "strong" first-quarter performance. 

The Analyst

Analyst Bobby Burleson reiterated a Speculative Buy rating on Planet 13 with a CA$4 ($2.97) price target. 

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The Thesis

Planet 13s superstore gave the brand significant market awareness that can be leveraged into branded products, like its recently launched Planet M CBD products, Burleson said in a Sunday note. (See his track record here.) 

The expansion to additional locations also impacted Canaccord's assessment.

"We expect the announcement of another location in the coming weeks, which should be fully funded and drive upside to our numbers," the analyst said. 

Planet 13 is planning to complete a new production facility later this year that should allow the company to generate 50 percent of Superstore sales with its own products in the long term, Burleson said. 

The company’s position in the market leads Canaccord to believe more success is ahead.

"We believe the company is well capitalized to fund on-going expansion initiatives including the production buildout and a potential lounge offering as well as potential state expansion opportunities that may come available beyond Nevada."

Price Action

Planet 13 Holdings' over-the-counter stock was trading up by 0.34 percent at $2.01 at the time of publication Monday. 

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