This analyst loves iFabric stock

Beacon Securities analyst Doug Cooper maintained a “Buy” rating and $9.50 target on iFabric (iFabric Stock Quote, Chart, News, Analysts, Financials TSX:IFA) after first-quarter results came in ahead of expectations.

iFabric reported Q1 revenue of $27.5-million, above company guidance of $25-million to $27-million, while EBITDA was $5.7-million, or a 20.7% margin, compared with $0.3-million and a 4.2% margin a year earlier.

Revenue included $3.9-million from Intimate Apparel, up 212% year-over-year, and $23.6-million from Intelligent Fabrics, up 305%.

In his May 12 report, Cooper said Intimate Apparel posted a record quarter as the company’s Nudish brand gained traction with retailers including Kohl’s, Target and Walmart.

“By targeting a larger and younger demographic and encouraged by a strong initial sell-in, management believes this will be a record year for this segment and offers 10%+ organic growth thereafter,” Cooper said.

Cooper said Intelligent Fabrics remains the larger opportunity, led by chemical sales, Roots-branded swimwear and footwear, leakproof underwear and medical scrubs. He highlighted scrubs as the biggest near-term growth driver because iFabric is only beginning to enter a US$12-billion-plus market.

“The company has proven the efficacy of its anti-microbial technology through a clinical trial, which resulted in an initial order from Walmart USA,” Cooper said. “After a ~350 store trial, it awarded IFA an incremental 1000 stores.”

He said “this is a near-term opportunity of massive growth and ultimately could result in double digit market share for IFA.”

Cooper said iFabric’s quarter-end inventory of $16.8-million suggests his fiscal 2026 revenue forecast may prove conservative, adding, “We have an upward bias to our forecasts.”

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

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