- 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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