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Is There More Upside to Planet 13 Holdings Stock?

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Stock performance

As of April 12, Planet 13 Holdings (PLTH) was trading at 3.17 Canadian dollars, which represents a rise of 112.8% since the beginning of this year. The company is trading at a discount of 9.4% from its 52-week high of 3.50 Canadian dollars and at a premium of 380.3% from its 52-week low of 0.66 Canadian dollars.

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Key price drivers

Planet 13 Holdings’ Las Vegas Cannabis Entertainment Complex, also called the Superstore, posted a revenue of $5.5 million in March, which represents a compounded monthly growth rate of 13.1% since its opening on November 1. The store’s revenue growth was driven by growth in both average daily customers and an increase in average ticket size.

On April 2, the company launched its third brand, Leaf & Vine, after the success of its earlier two brands, Medizin and TRENDI. In March, Planet 13 signed an agreement with Tyson Ranch, owned by boxer Mike Tyson, to become its exclusive launch partner in Nevada. Along with these announcements, the strengthening of the broader equity market has also driven Planet 13’s stock price.

During the same period, Planet 13’s peers Tilray (TLRY), Cronos Group (CRON), and Aurora Cannabis (ACB) returned -25%, 57.6%, and 74.8%, respectively. The Horizons Marijuana Life Sciences ETF (HMMJ), which tracks the performance of the public-listed cannabis businesses in North America, has returned 45.1% YTD, while the ETFMG Alternative Harvest ETF (MJ) has returned 40.7%.

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