Haywood analyst Gianluca Tucci has reiterated their bullish stance on KITS stock, giving a Buy rating yesterday.
Gianluca Tucci has given his Buy rating due to a combination of factors that highlight the growth potential and current market positioning of Kits Eyecare. The company has recently launched integrated vision care insurance support for its US customers, partnering with major insurance providers like VSP, Eyemed, and Superior. This strategic move is expected to enhance revenue growth, as insurance-paid shopping carts tend to be significantly larger than those paid out of pocket. The inclusion of these partnerships is seen as a positive step towards capturing a larger share of the US vision insurance market, which is substantial in size.
Additionally, the stock’s current trading at all-time high levels is attributed to an acceleration in EBITDA margins, which enhances the attractiveness of the risk-reward profile. Despite the unchanged estimates and target, there is an upward bias due to the company’s growth rates and margin improvements. Compared to its e-commerce peers, Kits Eyecare is notably undervalued, trading at a lower EV/Revenue multiple, indicating potential for re-rating as margins continue to scale. This undervaluation, combined with the expected revenue growth, supports the Buy rating.
According to TipRanks, Tucci is ranked #1067 out of 9406 analysts.
In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a C$14.50 price target.