Canaccord Genuity slightly revised its estimates for the Las Vegas, Nevada dispensary Planet 13 Holdings Inc (OTC: 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.
Need more cannabis news? Check out all of our coverage here.
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 companyâs 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.
Related Links:
Canaccord Genuity Turns Bullish On The Green Organic Dutchman After Sell-Off
Canaccord Raises MediPharm Price Target, Estimates
See more from Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.