PLTH stock is a buy, Beacon says

Following an acquisition he describes as “transformational” Beacon Securities analyst Doug Cooper has maintained his “Buy” rating on Planet 13 Holdings (Planet 13 Holdings Stock Quote, Chart, News, Analysts, Financials CSE:PLTH).

On May 10, PLTH closed the previously announced acquisition of pot retailer Vidacann.

“We are thrilled to welcome the VidaCann team to the Planet 13 family,” said PLTH co-CEO Bob Groesbeck. “This acquisition marks an important moment for our Company, as we leverage VidaCann’s established footprint and reputation, adding 26 stores to our portfolio to enhance our retail offering in Florida. We look forward to integrating our award-winning brands and retail expertise to drive growth and deliver unparalleled experiences to our customers.”

“P13 finally closed its acquisition of VidaCann on May 10,” the analyst noted. “The company now officially has a material footprint in the country’s best market. We believe this is a company changing event and positions P13 not only as a national player (operations in 4 states) but also as one of the best growth companies in the Tier 2 group.”

In a research update to clients May 21, Cooper maintained his “Buy” rating and price target of $2.00 on PLTH, implying a return of 156% at the time of publication.

The analyst thinks PLTH will post Adjusted EBITDA of $9.0-million on revenue of $126.3-million in fiscal 2024. He expects those numbers will improve to Adjusted EBITDA of $26.0-million on a topline of $176.5-million in fiscal 2025.