The ever-changing pace of technology has made companies like Vuzix (NASDAQ:VUZI) especially attractive on sheer potential value alone, if nothing else. Vuzix's line of hardware focusing on wearable display systems has a wide range of potential applications, and some recent new developments in the field have made an already-attractive technology firm about 15.5% more so, as demonstrated by recent share price gains.
A Partnership Demonstrating Vuzix's Capabilities
When most think of “wearable displays”, their thoughts tend to go straight to virtual reality (VR), and with good reason. VR is a huge, customer-facing development that might, under certain circumstances, represent one of the biggest advances in entertainment since the advent of the “talkie.” A point less often considered is augmented reality (AR), a field with much more utilitarian uses, but uses no less valuable under the right circumstances.
Vuzix showed off some of those right circumstances with a new partnership with TechSee, a company that offers “intelligent visual support” systems for field service reps and contact center operations. The partnership calls for Vuzix to begin offering TechSee's field solution on Vuzix's M400 and M4000 Smart Glasses systems. With such a move in place, reports note, Vuzix glasses put themselves toward the front of the line when it comes to hardware solutions for anyone looking to take advantage of AR in everyday operations.
Increasingly Bullish Trend From Analysts
Meanwhile in the broader analyst pool, as detailed by our latest research, the trend appears to be increasingly bullish for Vuzix. It's not without some detractors, but the company made the shift from a consensus “hold” to a consensus “buy” back in September 2020, and has held the line therein ever since.
The low point for Vuzix ratings for the last year is July 2020, where the company had two “hold” ratings, and no “buy” presence at all. That changed by October 2020, as two “buy” ratings stepped in raising the company to two “buy” and two “hold”. That rating stayed stable to March, where a third “buy” joined in, which brings us to today's leave of three “buy” and two “hold,” cementing the “buy” consensus.
The price target, meanwhile, is currently holding at an average of $21.50, with the high target calling for $30 per share and the low looking at a mere $13. Given the current price is holding at $24.32 as of this writing, it seems a bit of profit-taking may be in progress from yesterday's close.
A Company Trading on Great Potential
Deals like those with TechSee aside, it's not hard to see where Vuzix has a lot of room to run. Granted, most consumer-facing applications are looking much more closely at VR, and attempts to put AR into consumer hands have met with substantial failure in the recent past. I still remember the move to create an AR-driven car windshield that could display turn-by-turn GPS directions along with speedometer information and the like, and the only real response to it was outraged politicians yelling about “distracted driving.” That does seem to be changing, however, as more realize that putting all this information in the immediate field of view is more likely to reduce distraction than add to it.
Still, Vuzix's partnership with TechSee here may represent the best way forward for AR; highly-specialized business applications. For field service representatives, the value can be immeasurable; AR systems readily point out certainly likely-to-break components and can even present alternatives, making service calls go faster and smoother. That means better customer experiences, improved chances of repeat business, and that much extra value for the bottom line.
Vuzix also occupies an unusual place with investors; reports suggest its near the top of the technology sector with some analysts, while investor sentiment is struggling to get out of the “neutral” range. This may be owing to a lack of consumer-facing presence; with the bulk of retail investors likely unclear on Vuzix, or perhaps even hearing very little about it in general, it may not yet be the kind of “household name” that sends a stock upward. If Vuzix can make a slight lateral expansion into consumer-facing operations, it can take on the juggernauts of Facebook's (NASDAQ:FB) Oculus and the HTC (OTCMKTS:HTCKF) Vive systems in VR. Given the costs of these systems, a value competitor may be able to land some market share.
Vuzix is certainly going to need a little extra firepower to keep its upward momentum sustainable, but for the short term, it's certainly looking like a positive development. Getting in now may give you a shot at some further gains, so keep an eye on this one carefully as it may be more volatile than some expect.
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