In a report released on March 5, Gianluca Tucci from Haywood reiterated a Buy rating on Kits Eyecare (KITS – Research Report), with a price target of C$17.50.
Gianluca Tucci has given his Buy rating due to a combination of factors including Kits Eyecare’s impressive organic growth and strong financial performance. The company reported a 42% organic growth rate, which aligns with the perception of Kits as a B2C/e-commerce entity rather than just an optical vendor. This growth is further supported by a robust EBITDA margin, driven by a high percentage of repeat customers, which enhances marketing return on investment.
Additionally, the company’s guidance for the upcoming year suggests continued strong performance, with projected Q1/25 revenue exceeding expectations and a healthy EBITDA margin. The record free cash flow of $9.9 million in 2024 also underscores the company’s financial health. Looking ahead, Kits Eyecare is poised for significant expansion, with the potential to double its capacity and revenue within its existing infrastructure, positioning it favorably among its e-commerce peers.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a C$16.00 price target.
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