Boeing secures $883 million Army contract for cargo support services
On Monday, H.C. Wainwright adjusted its outlook on My Size (NASDAQ:MYSZ), a technology firm specializing in sizing solutions for the garment industry. The firm reduced the price target on the company's shares to $3.00, down from the previous target of $5.00, while maintaining a Buy rating.
This revision follows My Size's announcement of its September quarter results, which showed sales of $1.8 million. This figure represents a 7% sequential decrease from $2.0 million in June and a 14% drop from $2.2 million in the same quarter the previous year.
The company's declining sales for two consecutive quarters have been set against a backdrop of challenging economic conditions that have impacted consumer discretionary spending. Additionally, regional tensions surrounding Israel, where My Size is headquartered, have raised concerns. Nevertheless, the company has stated that the security situation in Israel has not materially affected its operations or financial results, thanks to its global presence and offices in Spain.
Despite the overall sales decline, My Size experienced a sequential increase in its Software-as-a-Service (SaaS) revenue, which rose to $172,000 from $163,000 in the previous quarter. This suggests that there is still interest in My Size's solutions, even as sales in soft goods and clothing have fallen. The company's inventory level also increased to $2.2 million from $1.8 million in June, indicating management's anticipation of customer demand, particularly as the holiday selling period approaches.
H.C. Wainwright remains optimistic about the potential for My Size's sizing technology within the garment industry. The firm believes in the long-term adoption of the company's solutions and maintains that the lowered price target reflects a more realistic goal for the stock in the current market environment.
InvestingPro Insights
Recent InvestingPro data provides additional context to My Size's financial situation and market performance. As of the last twelve months ending Q3 2024, My Size reported revenue of $9.63 million, with a significant revenue growth of 43.89%. This growth contrasts with the quarterly decline mentioned in the article, suggesting a more positive long-term trend despite recent challenges.
InvestingPro Tips highlight that My Size holds more cash than debt on its balance sheet and that liquid assets exceed short-term obligations. These factors could provide the company with financial flexibility as it navigates the current economic headwinds and regional tensions mentioned in the article.
However, it's important to note that My Size is not currently profitable, with an adjusted operating income of -$2.9 million over the last twelve months. This aligns with the InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year.
The stock's recent performance has been challenging, with InvestingPro data showing a one-year price total return of -72.83% as of the latest data point. This poor stock performance is reflected in several InvestingPro Tips, which note significant price declines over various time frames.
For investors considering My Size, it's worth noting that InvestingPro offers 14 additional tips for MYSZ, providing a more comprehensive analysis of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.