Vuzix (VUZI) stock is a winner, but how much can it increase?



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There is no stopping Vuzix (VUZI) now. The smart-glasses maker has been on a roll with shares rising 518% in the past 12 months.

However, Maxim’s analyst Jack Vander Aarde believes there is more to come. The 5-star analyst expects 2021 “to mark a significant growth inflection point.”

Vander Aarde bases his bullish thesis on several factors.

First off, the company just released a positive preliminary Q4 update. The company forecasts sales of over $ 4 million in 4Q20, which is more than 100% year-over-year. As a result of the update, the analyst increased its estimate of fourth-quarter revenue from $ 3.8 million to a corresponding $ 4 million.

In addition, over the past 30 days, the company’s balance sheet has been boosted by the addition of $ 28.6 million, following the triggering of nearly 6 million warrants exercises.

The company is also recognized by the industry; its Next Generation Smart Glasses (NGSG) recently received 3 CES 2021 awards.

Most importantly, Vuzix continues to report a “growing number of positive updates regarding product launches, new customers, and new verticals and product applications.”

On Wednesday, the company announced a collaboration with virtual care company Hippo Technologies, and earlier this month, medical technology company BioSig Technologies, announced plans to use Vuzix smart glasses to remotely serve some of its devices.

January’s wins follow a plethora of new customer additions in December. The list includes Pixee Medical, European resellers, US general merchandise retailers and “a major undisclosed international defense contractor.”

The abundance of good news translates into a rave review from Vander Aarde.

“We believe that VUZI’s long-term potential will only be limited by commercial and marketing investments and by further expansion of production capacity, which will likely take time to grow to the scale necessary for capitalize on the huge long term opportunity, ”the analyst said.

In addition, “[We] believes that it would be reasonable for VUZI to negotiate above its peers, based on our view that VUZI is well positioned for 100% + multi-year revenue growth (which we consider rare) and we believe that its commercially ready technology and product portfolio is ahead of its competitors, which should allow VUZI to have a dominant share in the nascent and growing AR / VR wearable market. “

To that end, Vander Aarde reiterated a buy note on VUZI shares, while doubling his price target from $ 6.5 to $ 13. (To look at Vander Aarde’s track record, click here)

Most street analysts, however, have yet to board. The title currently only has one other review, also noting it as a buy. The additional purchase means VUZI qualifies with a moderate purchase consensus rating. Still, both analysts expect stocks to stay in the range for now, as indicated by the current average price target of $ 12.50. (See VUZI stock market analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the analyst presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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