There is no stopping Vuzix (VUZI) now immediately. The manufacturer of smart glasses has risen by 518% in the last twelve months.
However, Maxim analyst Jack Vander Aarde believes that there is still to come. The 5-star analyst expects 2021 to be a significant growth turning point. ‘
Vander Aarde bases his factors on his bullish thesis.
First, the company has just announced a positive Q4 preliminary update. The company provides 4Q20 revenue of more than $ 4 million, which represents more than a 100% increase on an annual basis. Following the update, the analyst increased its Q4 revenue estimate from $ 3.8 million to a corresponding $ 4 million.
In addition, the company’s balance sheet has been boosted over the past 30 days with the addition of $ 28.6 million, after nearly 6 million warrants.
The company is also recognized by the industry; its Next Generation Smart Glasses (NGSG) recently received 3 CES 2021 awards.
Most important of all, however, is that Vuzix announces an “increasing number of positive updates regarding product launches, new customers and new market verticals and product applications”.
The company announced a partnership with virtual healthcare company Hippo Technologies on Wednesday, and earlier this month, medical technology company BioSig Technologies said it plans to use Vuzix’s smart glasses to remotely operate some of its devices.
The January victories follow in December on an abundance of new customers. The list includes Pixee Medical, European retailers, US general merchandise retailers, and an unknown major international defense contractor. ‘
The abundance of good news resulted in a glowing review from Vander Aarde.
“We believe that the long-term potential of VUZI will only be limited by sales and marketing and further production capacity, which will likely take time to develop further to the scale needed to take advantage of the massive long-term opportunity,” the analyst said.
Further “[We] believes that it would be reasonable for VUZI to trade at a premium to peers, based on our view that VUZI is well positioned for a perennial revenue growth of 100% + (which we consider to be scarce) and we believe the commercial readiness technology and product the portfolio is better than the competition, which we would expect VUZI to have a dominant share in the emerging and fast growing AR / VR portable market. ”
To that end, Vander Aarde is repeating a buy rating on VUZI shares, doubling its price target from $ 6.5 to $ 13. (To look at Vander Aarde’s record, click here)
However, most street analysts have not yet jumped on board. The stock currently has only one other review, which also rates it as a buy. The additional purchase means that VUZI qualifies with a moderate purchase consensus rating. However, the two analysts expect equities to remain limited for the time being, as the current average price target of $ 12.50 indicates. (See VUZI stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are those of the proposed analyst. The content is for informational purposes only. It is very important to do your own analysis before investing.