11:55 AM EST, 11/07/2025 (MT Newswires) -- Kits Eyecare ( KTYCF ) reported third-quarter results and introduced fourth-quarter guidance which at first glance looks slightly lower than consensus but appears to have a good dose of conservatism, notes Stifel Canada.

Analyst Martin Landry's investment thesis on Kits has not changed, and the recent weakness in the share price (down 31% in the last month) is a great opportunity for investors to add to their positions, he says.

Kits Black Friday marketing strategy has also been implemented and getting traction. The company continues to gain significant market share and has not seen trade-down patterns reported by peers.

"We see potential for revenues to double in the next four years. There is also an obvious path to margin expansion with capacity utilization below 50% at the company's lab and with private label products gaining traction," Landry adds.

Maintain Buy rating and $22 target price.

Price: 12.32, Change: -0.29, Percent Change: -2.30