The news is good coming from Las Vegas cannabis company Planet 13 (Planet 13 Stock Quote, Chart, News CSE:PLTH), according to analyst Doug Cooper of Beacon Securities. In an update to clients on Tuesday, Cooper said PLTH is poised to break through the $100-million run rate plateau in the fourth quarter. Planet 13, a vertically integrated cannabis company which operates its 100,000 square foot Superstore in Las Vegas and owns cultivation and production operations in Nevada, announced preliminary numbers on Tuesday for its third quarter 2020. Revenue for the Q3 was said to be $22.8 million, representing a 110 per cent increase over the previous quarter, while gross margin was listed at about 50 per cent. Management said the Q3 topline would be the highest in the company\u2019s history and comes due to a rebound in in-store sales with the city\u2019s reopening after COVID-19 along with growth in P13\u2019s home delivery and wholesale businesses. In-store revenue was pegged at $18.5 million compared to $16.3 million, delivery and curbside revenue at $3.4 million compared to $295,000 in Q3 2019 and wholesale and other revenue was listed at $1.0 million compared to $61,000 a year earlier. (All figures in US dollars except where noted otherwise.) Planet 13 Superstore (CNW Group\/Planet 13) \u201cQ3 has proven Planet 13\u2019s resilience and strength,\u201d said co-CEO Larry Scheffler in a press release. \u201cWe drove an impressive rebound in sales and a record quarter by making operational improvements in response to COVID-19. The improvements have led to higher average tickets and conversion rate despite the reduced tourist traffic. Along with these operational improvements at the store, our delivery and curbside pickup have expanded our revenue from Las Vegas residents.\u201d In his update, Cooper noted that while no EBITDA number was given, by its 50 per cent gross margin, P13 is likely to come in with earnings of about $5 million, which would be better than the company\u2019s high-water mark at $3.3 million for Q3 2019. Cooper provided a number of points in support of his bullish sentiment on the stock. He estimated P13\u2019s run rate to be at $92 million, and with the addition of its Medizin store, set to reopen in November, the company\u2019s total should be about $102 million. The analyst said P13 is about to start construction of its Santa Ana dispensary, likely to open in Q2 2021, with Cooper currently forecasting $20 million in California revenue for 2021, although he said the store could generate over $50 million in revenue. Cooper also noted that P13 should have more than $35 million in cash for expanding its footprint, although he has not factored any acquisitions into his model. \u201cPutting all of its assets together, we believe P13 has the assets to generate ~$170 million in revenue with $50+ million in EBITDA. In fact, that EBITDA margin could be significantly enhanced through its vertical integration strategy in NV whereby it will grow more of its own flower. In our opinion, this has the ability to increase gross margins in NV by 1500+ basis points,\u201d Cooper wrote. \u201cWhile the stock has had a strong move over the past few months, we continue to believe it is undervalued and does not reflect its leadership position in NV or its ability to grab hold of the huge market in CA, a huge state which is wide-open and lacks any sort of leadership,\u201d he wrote. With the update, Cooper has maintained his \u201cBuy\u201d rating and C$6.50 target price, which at press time represented a projected return of 68 per cent. \u201cWe continue to believe P13 is one of the best managed cannabis companies in our universe and with the addition of Medizin, California and $37+ million in cash, it has significant growth runway,\u201d Cooper wrote. On September 10, Planet 13 announced the completion of a (C) $23-million bought deal financing conducted by a syndicate of underwriters that was co-led by Beacon Securities and Canaccord Genuity. "The outstanding performance of our Nevada operations in July and August and our resilience in the face of COVID-19 have allowed us to continue to focus on the execution of our long-term growth strategy", said Bob Groesbeck Co-CEO of Planet 13. "Our balance sheet is rock solid and we are actively looking for ways to bring Planet 13 to highly attractive markets." That news followed on the July announcement that the company would acquire the Nevada cannabis licenses at a 45,000 square foot indoor cultivation and production facility in Las Vegas, adding to its cultivation totals. Co-CEO Larry Scheffler said there was a very particular reason for the expansion. "We've been pursuing additional premium indoor cultivation to expand our Medizin flower line, including our proprietary strain Chloe. Medizin sells out each harvest days after it hits the SuperStore shelves. This agreement allows us to add 25,000 square feet of indoor cultivation immediately, with the ability to expand up to 45,000 square feet in the future," Scheffler said. "We look forward to expanding our supply and offering it in 3rd party dispensaries for the first time."