As 2022 powers forward, interest in metaverse stocks has only grown further. Take for example Matterport (NASDAQ:MTTR), which went public last year via special purpose acquisition company (SPAC). Matterport operates as a spatial data company that seeks to create a 3D replica of physical spaces, such as homes, buildings and commercial real estate. Users can then explore these 3D replicas seamlessly, as if they were were really there. As of Q3, Matterport had 439,000 subscribers, which includes digital real estate brokerage Redfin (NASDAQ:RDFN). Now, Matterport’s technological prowess has inspired a major investment bank to issue a bullish price target on MTTR stock.
Deutsche Bank recently initiated coverage of MTTR stock with a “buy” rating and a price target of $14. The price target represents upside of more than 50% from current prices. Analyst Bhavin Shah views Matterport as the “leader in digitization of the built world.” Shah adds that he believes the digitalization of physical spaces is still in its early stages, with a global total addressable market (TAM) of $240 billion. In addition, the analyst expects the 3D digitalization company to grow revenues at a 52% compounded annual growth rate (CAGR) for the next five years.
With Deutsche Bank’s bullish thesis in mind, let’s take a look at how the rest of Wall Street feels about Matterport.
MTTR Stock Price Predictions
- Wedbush has a price target of $38. Like Shah, analyst Dan Ives believes Matterport is in the “early innings of a massive growth story playing out over the coming years.” Ives highlights Matterport’s free-to-paid business model and believes that it can attract more customers this year. However, MTTR stock was recently removed from Wedbush’s Best Ideas List due to “investment price discipline.”
- Berenberg has a price target of $25. Analyst Gal Munda believes that Matterport is changing the real estate and construction industry by offering “digital twins” of physical spaces. Furthermore, Munda calls Matterport a “clear market leader at scale” with a significant advantage over smaller point solutions competitors.
- Piper Sandler has a price target of $20. Analyst Brent Bracelin touts Matterport’s first-mover advantage and strong cash position. In addition, Bracelin sees sustained growth for the 3D digitalization company as long as it can capitalize on opportunities in the “international, public sector, commercial, and the marketplace.”
- Finally, Matterport has an average price target of $29.60 among five firms with coverage of the stock.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.