Slyce has 336 per cent upside, says Euro Pacific

Another Fortune 500 client win has Euro Pacific Canada analyst Rob Goff feeling bullish about Slyce (Slyce Stock Quote, Chart, News: TSXV:SLC).

Yesterday, Slyce announced it had entered into an agreement with an unnamed Fortune 100 retailer to provide visual search for mobile commerce. Slyce says its technology will allow customers to snap images of products and find matching products in the retailer’s on-line product catalogue.

“We’re immensely excited to add another marquee retailer to our client base,” said CEO Mark Elfenbein. “This not only further demonstrates the level of demand for visual search in the market but also represents another major endorsement of our technology platform.”

Goff says investors should take advantage of what he feels to be the current low price of Slyce’s stock in the face of what he sees to be clear business momentum. In a research update to clients today, the analyst laid out his top-down view of what he thinks the company can accomplish within five years.

“Slyce’s website highlights that it is currently working with over 6 of the top 20 leading retailers in N. America (10 announced contracts),” said the analyst. “Major clients include JCPenney (JCP-US, NR), Home Depot (HD-US, NR), Neiman Marcs (Private), and Toys”R”us (Private). Slyce has moved aggressively with a real-world attack plan securing key, profile relationships that will ensure an inside track at the initial target market of roughly 1,200 retailers with revenues of $600M+. We believe signing a relatively modest 190 B2B clients within the next five years would support annual revenues/EBITDA of $45M/$25.7M and FCF of $0.11/shr.”

Goff today maintained his “Speculative Buy” rating and one-year target price of $0.85 on Slyce, implying a return of 335.9 per cent at the time of publication.

Disclosure: Slyce is an annual sponsor of Cantech Letter.