KITS: Strong Growth, Expanding Margins, and Technology Upside Support Buy Rating Despite Valuation Discount

Haywood analyst Gianluca Tucci reiterated a Buy rating on Kits Eyecare today and set a price target of C$27.00.

Gianluca Tucci has given his Buy rating due to a combination of factors that highlight both strong current execution and attractive future prospects. KITS reported robust preliminary Q1 2026 results, with total revenue growing in the low‑20% range year over year and its high-margin glasses business expanding at a markedly faster pace, which is driving meaningful improvement in profitability and demonstrating operating leverage in its vertically integrated model.

In addition, Tucci notes that KITS shares trade at a notable discount to comparable companies despite faster growth and a solid, uncomplicated balance sheet. He also points to the company’s strategic push into technology, including its OpticianAI initiative and new Pangolin Gen‑3 smart glasses, which could support a higher valuation profile over time; together, these elements underpin his view that any share price weakness represents a buying opportunity.

In another report released on March 27, Roth MKM also maintained a Buy rating on the stock with a C$27.00 price target.