How Planet 13's Margins Weather the 3Q23 Cannabis Storm, Analyst Forecasts
Portfolio Pulse from Nicolás Jose Rodriguez
Pablo Zuanic, a senior analyst at Zuanic & Associates, reviewed Planet 13 Holdings' (OTC:PLNH) 3Q23 performance, noting a 3% YoY sales decrease and a 4% QoQ decrease, mainly in Nevada. California showed a 2% increase in wholesale sales. Despite a 12% sales drop in December CY22, the company maintained a 45.9% gross margin. However, concerns arise from the decline in EBITDA margin and increased operational expenses. For 4Q23, minimal top line growth is expected, while CY24 growth is anticipated from new stores and the VidaCann deal in Florida. Zuanic remains optimistic about PLNH's growth potential, maintaining an Overweight stance on the stock.
November 18, 2023 | 3:01 pm
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Planet 13 Holdings experienced a mixed 3Q23 with a sales decrease in Nevada but an increase in California. The company's gross margin remains strong despite a sales drop. Analyst Pablo Zuanic is optimistic about future growth, especially with the VidaCann deal, and maintains an Overweight stance on the stock.
The analyst's report indicates a mixed performance but maintains a positive outlook for Planet 13, especially with the VidaCann acquisition. The Overweight recommendation suggests confidence in the stock's potential for growth, which could positively influence investor sentiment and the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100