Are you ready for the next big trend on Wall Street?
It’s likely that following Facebook’s announcement of a rebranding to Meta and its intention to focus energies on the metaverse, a whole new investing theme should open up.
A name to watch here, says Wedbush’s Daniel Ives, is one “core metaverse play.”
“We continue to believe Matterport (MTTR) is in the early innings of a massive growth story playing out over the coming years,” the 5-star analyst said. “Based on our conversations with investors over the past few months we believe this tech story remains ‘under the radar’ among growth investors and we highlight MTTR as one of our favorite ideas heading into year-end and 2022 with an appetite for the metaverse world on the horizon.”
In fact, Facebook and the spatial data company already have a working relationship. In July, the two announced Matterport will collaborate with Facebook AI Research to assemble the largest-ever dataset of 3D indoor spaces. These will be made available for academic, non-commercial uses. Ives thinks this amounted to the “first step” towards a much broader Facebook and Matterport association.
The analyst highlights Matterport’s unmatched “unique and vast” 3D-data library in a market for real estate and other verticals already exhibiting signs of huge growth.
Nonetheless, it is still very much in the early stages. How big is the opportunity? Ives thinks there is a $240 billion-dollar global TAM (total addressable market) here. To date, Matterport’s spatial data library has only mapped out ~15 billion square feet, amounting to a penetration rate of less than 1% of said TAM. This opportunity is especially pertinent domestically, as with 935 million spaces across the US, the country accounts for the third-largest market in the world, and represents a “huge opportunity for Matterport to exploit.”
All in all, Ives rates MTTR an Outperform (i.e. Buy) along with a $26 price target. This figure suggests room for ~11% upside over the coming months. (To watch Ives’ track record, click here)
Ives’ colleagues agree MTTR is a Buy; all 5 recent analyst reviews are positive, providing the stock with a Strong Buy consensus rating. However, since going public via a SPAC merger toward the end of July, shares have accumulated gains of 58% and, as such, most analysts believe the shares are currently fairly valued. (Find out why MTTR is a ‘Perfect 10’ stock)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
