Matterport Inc.'s MTTR growth story evinces confidence heading into 2022, according to an analyst at Wedbush.
The Matterport Analyst: Daniel Ives maintained an Outperform rating on Matterport shares and increased the price target from $30 to $38.
The Matterport Thesis: Matterport is in the early innings of a massive growth story playing out over the coming years, analyst Ives said in a note.
"Based on our conversations with investors over the past few months we believe this tech story remains 'under the radar' among growth investors," the analyst said.
Matterport is one of Wedbush's favorite ideas heading into 2022, he added.
The company's free-to-paid conversion model and further penetration of the real estate vertical remain near-term keys to a "stepped-up" growth story, the analyst said. Penetration on the retail verticals remains very untapped, the analyst noted.
As Matterport has only mapped out about 15 billion square feet within its spatial data library, the company is less than 1% penetrated within the huge $240 billion-dollar global market, the analyst said.
The company is currently in a transitional phase as it moves away from the traditional one-time purchase sales model to a subscription-based model, allowing the company to increase annual recurring revenue, the analyst noted.
Ives expects the numbers to grow, especially as the company's mobile app continues to bring on new customers and convert existing free users to paid subscription plans.
Matterport is at the intersection of the "transformational metaverse theme," with the Meta Platforms Inc FB partnership just the start of a much broader strategy, according to Ives. More technology partnerships will likely materialize, heading into the next 12 to 18 months, he added.
Matterport Price Action: Matterport shares were slipping 2.15% to $32.34 Tuesday afternoon at publication.
Photo: Courtesy Matterport
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