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What Analysts Are Recommending for Planet 13 Holdings

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Analysts’ recommendations

Of the three analysts that follow Planet 13 Holdings (PLNHF) (PLTH), one analyst is favoring a “strong buy,” while the remaining two analysts are recommending a “buy.” Analysts have given Planet 13 a 12-month price target of 4.83 Canadian dollars, which represents an upside potential of 52.5% from its stock price of 3.17 Canadian dollars as of April 12.

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Peer comparisons

Of the 15 analysts that follow Canopy Growth (WEED), two analysts are favoring a “strong buy” rating, while six analysts are recommending a “buy,” six are recommending a “hold,” and one analyst has given it a “sell” rating. On average, analysts’ 12-month price target for Canopy Growth stands at 73.31 Canadian dollars, which represents an upside potential of 30.2% from its stock price of 56.31 Canadian dollars.

Of the six analysts that cover MedMen Enterprises (MMEN) (MMNFF), two analysts are favoring a “strong buy” rating, while four analysts are recommending a “buy.” On average, analysts have given MedMen a 12-month price target of 8.09 Canadian dollars, which implies an upside potential of 118.1% from its stock price of 3.71 Canadian dollars.

Of the five analysts that cover Acreage Holdings (ACRGF) (ACRG-U), two analysts are favoring a “strong buy,” while three analysts are recommending a “buy” rating. On average, analysts have given Acreage Holdings a 12-month price target of $36.40, which represents an upside potential of 77.0% from its stock price of $20.54.

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Valuation multiple

The surge in Planet 13’s stock price since the beginning of 2019 has also raised its valuation multiple. As of April 12, Planet 13 Holdings was trading at a forward EV-to-sales multiple of 1.84x compared to 1.31x at the beginning of this year. On the same day, peers MedMen Enterprises, Acreage Holdings, and Canopy Growth were trading at forward EV-to-sales multiples of 3.63x, 2.89x, and 19.46x, respectively.

Analysts’ estimates

Analysts are expecting Planet 13 to post revenue of $21.3 million and $89.8 million in 2018 and 2019, respectively. The company is expected to make profits in 2019 with net profits of $6.7 million in 2019. For 2018, analysts expect the company to report a loss of $4.6 million.

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