According to Singular Research, which set a $1.50 price objective for NexTech over the next 12 months, the company is expected to account for $250 billion of the $5 trillion global e-commerce industry annually.
Based on information from US broker Singular Research, NexTech AR Solutions Corp. offers an investment opportunity in augmented reality and the metaverse as the business is carving out a place in the e-commerce sector with its 3D modelling endeavours.
The analysts gave the stock a “Buy-Venture” recommendation and set a 12-month price target of $1.50, which is 9.5 times the 2023 enterprise value-to-revenue estimate.
Nextech, a company located in Toronto, buys, develops, and distributes augmented reality (AR) technology. It offers a variety of platforms, such as ARway, a Unity-based platform that employs AI to scan and detect surroundings for 3D spatial mapping. Users may incorporate a 3D model on a product page on websites using ARitize 3D for Commerce, another end-to-end AR platform. Others concentrate on holograms, social media, architecture, and event management.
Analysts revealed that the firm’s platforms and applications, which fall within the NexTech Metaverse Suite/AR banner, are specially designed to serve the e-commerce industry. They can therefore help their clients in keeping up with the changing demands of today’s retail sector consumers.
Ecommerce product sales accounted for the majority of NexTech’s revenues, which increased from $20,000 in 2018 to $25.93 million in 2021. By 2026, the brokers forecast NexTech’s sales to reach $378 million, giving the business a $284 million market value. The brokers predict that NexTech will have a share of the $5 trillion global e-commerce sector worth $250 billion annually.
According to the broker, NexTech recently separated ARway into a separate publicly listed business in an effort to increase the value of this specialised technology. The spinout will provide NexTech stockholders with a dividend with as many shares as four million.
According to the brokers, by spinning off ARway, NexTech will be able to reduce running costs by around $1.2 million annually. They also think that the new venture will enable ARWay’s management to narrowly concentrate on the AR industry’s Indoor Positioning and Navigation sector. This will, in effect, establish NexTech as the market leader in this sector. Presently believed to be worth roughly $11 billion annually, the indoor positioning and navigation industry is expected to expand at a 42% annual compound rate.
According to Singular Research, NexTech’s AR technology is essential for e-commerce businesses to meet client expectations. Virtual reality technology is being considered a godsend for the sale of commodities like furniture and premium luxury items.
According to brokers, NexTech has more than 100 customers. It said that the products offered by NexTech have greater click-through rates, which raise conversion rates for online purchases and sharply lower return rates. Similarly to this, the company’s offers boost new customers’
Some of the high-profile customers include Amazon, Kmart, NAPA, Target, Sears and Target. Among many others, SalesForce, Google Ads, Shopify, and Oracle, all have compatibility with NexTech platforms.
