On Wednesday, H.C. Wainwright adjusted its price target on shares of My Size (NASDAQ:MYSZ), raising it to $5.00 from the previous $1.50, while reiterating a Buy rating on the stock. This revision follows My Size, Inc.'s reported increase in sales for the March quarter, which saw a 5% sequential rise from December's $2.8 million to $3.0 million. The growth was attributed mainly to contributions from Orgad, despite the typical first-quarter downturn in sales following the holiday season.
The company's Naiz Fit and My Size sizing applications generated approximately $0.177 million in revenue during the quarter. Although this figure represents only a slight increase from the $0.142 million reported in March 2024, it indicates an advancement in expanding the customer base for the company's fitting solutions. Orgad's operational improvements have been particularly noteworthy, as it has been generating cash to support My Size's broader business initiatives.
My Size's management of inventory, shipping, and utilization of Fulfillment by Amazon (NASDAQ:AMZN) (FBA) services has been highlighted as a key factor in the company's improved performance. Orgad leverages FBA for the packaging and delivery of items sold on Amazon's platform, including garments, shoes, and bags. The analyst emphasized the potential of My Size's unique sizing software, which does not rely on privacy-compromising cameras, to gain wider market acceptance.
Additionally, on April 23, My Size implemented a 1-for-8 reverse stock split. The analyst noted that the prior price target of $1.50, which would be equivalent to $12 post-split, was not rational considering the stock's trading range of $3.50 the day before the report. The new price target is set at $5, reflecting the firm's continued confidence in the stock's prospects.
InvestingPro Insights
Following the positive outlook from H.C. Wainwright on My Size (NASDAQ:MYSZ), InvestingPro offers key insights that may further inform investors about the company's financial health and market position. An InvestingPro Tip that stands out is My Size's ability to hold more cash than debt on its balance sheet, which can be a sign of financial stability and potential for future investments or weathering economic downturns. Additionally, analysts anticipate sales growth in the current year, aligning with the company's recent reported increase in sales for the March quarter.
On the flip side, My Size is quickly burning through cash, which raises questions about its long-term financial sustainability. Moreover, the stock has taken a significant hit over the last week, month, and even further back, indicating that investor sentiment has been bearish. This may be a point of concern for potential investors, especially when coupled with the fact that analysts do not anticipate the company will be profitable this year. Despite these challenges, My Size's liquid assets exceed short-term obligations, which suggests that the company can meet its immediate financial liabilities.
For investors looking for a deeper dive into My Size's financials and future outlook, InvestingPro offers additional tips and metrics. There are 14 more InvestingPro Tips available for My Size at https://www.investing.com/pro/MYSZ. To gain access to these valuable insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.