Perfect Stock Jumps 10% - Analyst Calls PERF An Ideal Blend Of Social Commerce, Augmented Reality

  • Piper Sandler analyst Clarke Jeffries initiated coverage on Perfect Corp PERF with a Neutral rating and a price target of $7.
  • A marquee position in the development of AR Beauty technology with 85% of the most prominent beauty groups as customers indicates Perfect is well aligned to take advantage of a potential $10 billion+ market opportunity. 
  •  Perfect has demonstrated impressive industry mind share with 85% of the top 20 beauty groups as customers and attracted notable strategic investors like Snap Inc SNAP and Alibaba Group Holding Limited BABA
  • However, last week's results indicated that macro pressures are weighing on the company's ability to land & expand with beauty & fashion brands.
  • He estimates CY23E revenue growth could moderate to mid-teens from >35% last year due to macro. 
  • Headwinds could weigh on PERF's path to a more significant scale, but he also saw a healthy business with ~$200 million of cash on hand and only modest operating losses this year.
  • Price Action: PERF shares traded higher by 9.35% at $6.32 on the last check Tuesday.
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