Its stock has been on a slide since late last year, but Paradigm Capital analyst Corey Hammill thinks DIRTT Environmental (DIRTT Environmental Stock Quote, Chart, News: TSX:DRT) currently has a lot of upside.
In a research update to clients today, Hammill maintained his “Buy” rating and one-year price target of $8.50 on DIRTT Environmental, implying a return of 66 per cent, including dividend.
On June 13, Hammill attended the company’s annual trade show, DIRTT Connext 2016, and came away feeling bullish about the company’s evolving virtual reality offerings and a wide array of new products he calls innovative.
“Overall, we were very impressed with the DIRTT Connext show,” said Hammill. “The show runs concurrently with NeoCon in Chicago, which leads to the event being well attended by Architects and industry professionals. DIRTT’s ability to expand its core technology to create new and additional features continues to impress us. We believe the flexibility of the company’s technology will allow it to further grow its current offerings base and continue to enter new markets, which should provide further runway for growth. At Connext, the company especially highlighted its new virtual reality program. DIRTT’s ICE 3D software uses immersive technology to show designers what the interior space will look like in a virtual world, much like a 3D videogame experience.”
Founded in 2005, Calgary-based DIRTT, an acronym for ”Doing It Right This Time”, employs a 3D software platform to design and produce custom prefab interiors. The company compares its product to Lego in that its components connect using a repeated interface, but produce a unique result.