ODDITY Tech's Bright Future, Analyst Credits Artificial Intelligence

KeyBanc Capital Market analyst Scott Schoenhaus initiated coverage on ODDITY Tech Ltd ODD at an Overweight rating with a price target of $60. 

The analyst sees ODD in the early stages of its growth story, having near-term tailwinds from its ongoing disruption of beauty and wellness end markets and longer-term growth opportunities from its differentiated technology. 

Schoenhaus believes deploying the nascent hyperspectral technology and company-owned biotechnology asset (both empowered by AI) can lead to novel treatment creations in the beauty and wellness categories. 

Also, the analyst believes the company's assets have large potential opportunities to be used for more acute care in dermatology, such as eczema, psoriasis, melanoma screening, etc.

The analyst adds that the company's deployment of algorithms and machine learning models to leverage user data aims to deliver a precise product match and can be further boosted with hyperspectral technology. 

Schoenhaus estimates revenue and adjusted EBITDA of $476.9 million and $98.4 million in FY23 and $567.2 million and $126.7 million in FY24, respectively.

Also Read: ODDITY Tech Is Game-Changer In Beauty & Wellness — Analyst Praises 40M+ User Base And Machine Learning Recommendations

Price Action: ODD shares are trading lower by 4.73% at $44.16 on the last check Tuesday.