Haywood raises price target on KITS Eyecare to $21.00

Haywood Capital Markets analyst Gianluca Tucci reiterated a “Buy” rating on KITS Eyecare (KITS Eyecare Stock Quote, Chart, News, Analysts, Financials TSXV:KITS) and raised his target price to $21.00 from $18.00 in a July 2 update.

Tucci said KITS is well-positioned to continue outpacing industry growth as it leads the shift from brick-and-mortar to online eyewear retail. The increased target price reflects updated financial estimates and a reduced discount rate of 14% from 15%, citing the company’s strong financial position.

“The way we see the world, and how we acquire the tools to do so, is undergoing a profound revolution,” Tucci said. “The traditional optical industry, long dominated by brick-and-mortar establishments, is rapidly shifting online, driven by an insatiable consumer demand for convenience, affordability, and personalized digital experiences. We explore the powerful forces behind this transformation, highlighting the immense market opportunity that positions KITS as a leading innovator poised to continue capturing significant value in this digitized landscape.”

Tucci said the eyewear industry is undergoing a major shift, with e-commerce driving a long-term move away from traditional retail. The global eyewear market is expected to grow to over US$323-billion by 2030, with the online segment more than doubling from US$45.8-billion in 2024 to nearly US$100-billion by 2034. He said KITS is well-positioned to benefit from this shift, thanks to its digital-first model, vertical integration, and focus on customer experience.

“Consumers increasingly seek the ease of online shopping, allowing them to browse a vast selection of frames and lenses from the comfort of their homes,” he said. “This convenience extends to online eye exam tools and virtual try-on features, bridging the gap between online and in-store experiences. The COVID-19 pandemic significantly accelerated this shift, pushing many consumers who previously relied on in-person services to explore and embrace online options for healthcare and retail, including eyewear. This behavioural change is proving to be sticky, contributing to the sustained growth of e-commerce in the optical sector.”

Tucci said KITS posted record Q1 2025 revenue of $46.6-million, up 34% year over year, and marked its tenth straight quarter of positive Adjusted EBITDA, showing strong growth and solid execution in the online eyewear market.

The U.S. market for online eyeglasses and contact lens sales is expected to grow from about US$1.66-billion in 2024 to US$1.68-billion in 2025, according to IBISWorld.

“This indicates a growing, albeit still relatively nascent, online segment within the broader market,” Tucci said. “The North America soft contact lenses market alone was estimated at US$3.6B in 2024, according to Grand View Research, and is projected to grow at a CAGR of 8.0% from 2025 to 2030, reaching US$5.7B by 2030. This highlights a substantial and growing online component for contact lenses.”

He said the North American eyewear market is large, and with most spectacle sales still happening offline, KITS has a big opportunity to shift those purchases online—representing-billions in potential revenue.

KITS is led by experienced founders with a strong track record in e-commerce optics, giving the company the strategic focus and know-how needed to succeed in a changing market.

“Roger Hardy, CEO, built and eventually sold a successful TSX-listed optical business in 2014 to Essilor for $430M, delivering a 523% return for investors,” Tucci said. “Confidence in KITS’ management is further evidenced by insider ownership of ~60% and disciplined marketing spend.”

Tucci thinks that KITS will do $12.1-million in Adjusted EBITDA on revenue of $202.1-million in fiscal 2025. He thinks those numbers will improve to $18.2-million on revenue of $240.5-million in fiscal 2026, up from prior estimates of $17.9-million and $236.4-million, respectively.

“While competition in the online eyewear space is intensifying, KITS’ commitment to operational efficiency, customer satisfaction, and leveraging advanced technology places it on a solid growth trajectory,” he said. “The inherent barriers to entry for new competitors in the vertically integrated online optical space further solidify KITS’s competitive moat. The future of optical retail lies in a seamless blend of digital convenience and personalized service, a model that KITS is actively championing. As the industry continues to evolve, KITS is well-equipped to maintain its disruptive position, drive continued market share gains, and deliver sustained value to its customers and shareholders, making it a compelling investment opportunity in the evolving landscape of vision care.”