iFabric wins “Buy” rating at Beacon Securities

Beacon Securities analyst Doug Cooper initiated coverage of iFabric Corp. (iFabric Stock Quote, Chart, News, Analysts, Financials TSX:IFA) on April 23 with a “Buy” rating and a $9.50 price target, arguing the company’s ProTX2 technology could position it at the forefront of the next major shift in textile innovation.

“Anti-microbial protection could be the next evolution in the long line of textile technologies,” Cooper said, as awareness has grown since the COVID-19 pandemic around the role clothing can play in carrying bacteria and viruses. He said iFabric’s ProTX2 stands apart because it is the only textile-applied antimicrobial technology whose efficacy has been validated through a clinical trial.

The analyst said innovation has historically driven both performance gains and category creation in apparel, from moisture-wicking fabrics to specialized markets such as activewear, footwear and workwear, but argued there has been little true innovation in textiles since moisture-wicking emerged in the late 1980s.

iFabric’s opportunity extends beyond licensing, with the company now pushing further into its own branded products using a broader portfolio that includes moisture-wicking, water repellency and anti-odour features. Cooper sees medical scrubs as a particularly attractive market, arguing that a clinically validated antimicrobial product could shift the category from a “nice to have” to a “must have” for healthcare workers.

The North American medical scrubs market is worth more than US$12-billion and is growing faster than the broader apparel sector, driven by demographic trends and healthcare demand. Cooper pointed to iFabric’s retail traction, noting the company won its first Walmart order in October 2025 for a 350-store trial, which was expanded by another 1,000 stores in March 2026.

That rollout is a key reason Cooper highlighted iFabric’s first-quarter fiscal 2026 guidance of $25-million to $27-million in revenue, up 250% to 270% from $7.1-million a year earlier. He said the company’s combination of differentiated product features, strong retail partners and mid-range pricing could help it capture a high-single-digit share of the scrubs market over the next three to five years.

On valuation, Cooper based his $9.50 target on 4.0x his fiscal 2027 sales forecast and 23x EBITDA. He said fiscal 2026 is already set to be a record year and argued the company’s growth runway, intellectual property and earnings potential are not fully reflected in the current share price.

Cooper expects iFabric to generate $7.1-million in Adjusted EBITDA on $54.0-million in revenue in fiscal 2026, improving to $12.9-million in Adjusted EBITDA on $75.6-million in revenue in fiscal 2027.

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