As COVID restrictions begin to lift across Las Vegas and Nevada, Beacon Securities analyst Doug Cooper is expecting big things from Planet 13 (Planet 13 Stock Quote, Chart, News, Analysts, Financials CSE:PLTH). Cooper reviewed the cannabis company’s latest quarterly numbers in an update to clients on Friday where he reasserted his “Buy” rating and upped his target price from C$9.00 to C$11.50 per share.
Planet 13 is a vertically integrated company with cultivation, production and distribution assets in Nevada which runs the Superstore, a 100,000 sq ft facility cannabis outlet in Las Vegas. With COVID-19 cases dropping across the United States, Nevada is now relaxing its restrictions as vaccinations work to reduce the spread of the virus and its variants.
The US Centers for Disease Control announced in mid-May that Americans could stop wearing masks in most indoor and outdoor spaces. Since then, the Nevada Gaming Control Board has followed suit in giving casinos the ability to set their own operating rules, with companies like Wynn Las Vegas and MGM Resorts permitting vaccinated employees and guests to go maskless indoors.
Then last week, the Gaming Control Board said all COVID-19 mitigation protocols would be rescinded as of June 1, including social distancing and occupancy limitations at casinos and hotels. Resorts are now reporting 100-per-cent occupancy.
The changes have brought good fortune to Planet 13, which reported its first quarter 2021 financials on Thursday, showing revenue up 42 per cent year-over-year and adjusted EBITDA of $5.2 million compared to $2.4 million a year earlier. Gross profit before biological adjustments was $12.8