Investors are overlooking Oddity Tech , which is poised to become a leader in the growing digital beauty and wellness market, according to KeyBanc.
Analyst Scott Schoenhaus initiated coverage of the Israeli beauty company with an overweight rating and assigned a price target of $60, suggesting shares stand to gain more than 29% in the next 12 months.
"We see ODD in the early stages of its growth story, with near-term tailwinds from its ongoing disruption of beauty and wellness end markets but longer-term growth opportunities that can be unlocked given its unique, differentiated technology," Schoenhaus wrote in a Monday note.
Oddity's use of its "nascent hyperspectral technology" and a company-owned biotechnology asset — both powered by AI — will lead to novel beauty and wellness treatments, KeyBanc said.
Oddity's legacy IL Makiage brand comprises about 2% of the total beauty market, the note said.
Persons:
Scott Schoenhaus, Schoenhaus, —, KeyBanc, Goldman Sachs, Morgan Stanley, — CNBC's Michael Bloom
Organizations:
Allen, Co
Locations:
Israeli