Deutsche Bank initiated coverage of metaverse play Matterport with a buy rating, calling the company a leader in the digitization of the built world.
- The bank’s analysts led by Bhavin Shah started coverage on Tuesday with a price target of $14, implying a 46% upside from the recent close.
- Matterport’s technology platform enables customers to create a digital twin of any space or building with relative ease, and this should drive impressive growth over the foreseeable future, the note said.
- Strong mindshare, a robust capture services network and a freemium model are meaningful network effects which should accelerate the company’s competitive positioning, the report added.
- Much of the real estate industry has lagged in innovation, and these underlying industry dynamics bode well for Matterport, Deutsche Bank said.
- The market opportunity is sizeable, with the global opportunity at $240 billion and an $11.2 billion total addressable market in the US alone, it added.
- The bank sees a significant long-term opportunity for Matterport to provide insights and to monetize the spatial data on its platform.
- Matterport shares closed 1.4% lower at $9.59 on Tuesday.