Analysts at HC Wainwright reiterated their Buy rating and $2 price target on My Size Inc, noting that the company has accumulated “a substantial list of new contract wins” to boost its sales growth ramp.
Wainwright said that the Israel-based company has created innovative measurement solutions based on its patented algorithms for broad applications in the fashion, shipping and parcel package delivery, and Do-It-Yourself (DIY) industry.
Over the course of four years, MySize has released several measurement apps. The company's popular MySizeID, is a measurements widget that measures shoppers with their smartphone sensors and provides them with their precise body fit; BoxSize, a parcel measurement application allows customers to measure the size of their parcel with their smartphone; SizeUp allows users to use their smartphone as a tape measure; and SizeIT gives users the ability to measure objects with a quick flick of their mobile device.
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“We continue to see "sizable" opportunity in addressing online clothing shopping size determination offered in its solution, MySizeID. On the positive, My Size has accumulated a substantial list of new contract wins, serving to bolster confidence in a sound upward sales trajectory supported by familiar brands such as: GANT, Nautica, Dockers, and industry tech companies such as Wix eCommerce and GK Software, where the common issue of sizing in online garment purchases seems best addressed with an accurate digital measurement,” the Wainwright analyst said in a note to clients.
“Important, too, we believe, My Size's other sizing solutions, Sizeup, a smartphone app that measures, much like a tape measure, and Boxsize, a measurement app for the package delivery market, are commercially available. Contract progress for each of these is less evident at this juncture, but with the shareholder conflict resolution announced in early November, we expect more attention paid to commercial development across the board. Given a straighter, business-building course ahead, and the increase in commercial agreements, we are returning to our initial bullish stance,” he added.
In addition, the Wainwright analyst now expects My Size to ramp up growth and penciled in a 2022 sales forecast of $2 million and “future sales escalation.”
“Our conservative $2 price target was initially fashioned on the combination of comparable company analysis and discounted cash flow (DCF) analysis, where the DCF now justifies our price target,” he added. “With the share issuance through the past 18-24 months, a lofty almost 20x EV-to-sales multiple now represents our $2 price target.”
My Size stock currently trades at around $0.68 on the tech-dominated Nasdaq.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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