In a report released yesterday, Gianluca Tucci from Haywood reiterated a Buy rating on Kits Eyecare (KITS – Research Report), with a price target of C$18.00.
Gianluca Tucci has given his Buy rating due to a combination of factors that highlight Kits Eyecare’s strong financial performance and growth potential. The company has revised its Q1/25 adjusted EBITDA margin guidance upward, reflecting a positive trend in repeat order volume and significant growth in its glasses business. The robust performance in the glasses segment, which boasts higher gross margins compared to contacts, suggests a favorable shift in the company’s revenue mix.
Looking ahead, Tucci anticipates that Kits Eyecare will reach its current capacity in its Vancouver optical lab within the next two years, with the potential to double its capacity and revenue with minimal capital expenditure. This growth trajectory, coupled with the company’s strong position among internet and e-commerce stocks with impressive revenue growth projections, supports the Buy rating and an increased price target.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a C$18.00 price target.
KITS’s price has also changed slightly for the past six months – from C$9.850 to C$9.390, which is a -4.67% drop .