iFabric is “just getting started”, this analyst says

Beacon Securities analyst Doug Cooper says iFabric’s (iFabric Stock Quote, Chart, News, Analysts, Financials TSX:IFA) Aura scrubs launch at Target adds another major U.S. retail channel for its performance medical apparel business.

In a July 14 update, Cooper maintained his “Buy” rating and $9.50 target on iFabric.

Markham, Ont.-based iFabric announced the launch of Aura, a performance medical apparel scrubs line, with a leading U.S. national mass retailer. Cooper believes the retailer is Target.

The Aura line is launching in about 400 U.S. stores and on the retailer’s e-commerce platform. The scrubs use iFabric’s PROTX2 antimicrobial technology and ecoPEL water-repellent technology.

“The bottom line, in our opinion, is that IFA is just getting started in its growth trajectory,” Cooper said.

The analyst said Target’s entry into the scrubs category is significant, particularly because it chose iFabric over more established brands. Cooper said iFabric’s performance characteristics and price point likely helped, with Aura listed online at US$24.99 per piece compared with more than US$50 for FIGS.

Cooper said iFabric now has scrub distribution with Target, Walmart and Costco Canada, giving it access to major discount big-box channels. He said the Target launch represents about 20% initial penetration of its roughly 2,000 U.S. stores, while iFabric sells through about 1,500 of Walmart’s 4,600 U.S. stores.

He also sees potential for Costco U.S. listings, which would add another 650 stores.

Beyond scrubs, Cooper said iFabric’s portfolio includes footwear, swimwear, athleisure, chemical treatments and intimate apparel, with bedding expected to launch shortly.

He said iFabric trades at about two times his fiscal 2027 sales forecast, though he believes that forecast has meaningful upside.

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

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