The Globe and Mail reports in its Friday, March 7, edition that Ventum Capital Markets analyst Devin Schilling has reaffirmed his "buy" recommendation for Kits Eyecare. The Globe's David Leeder writes that Mr. Schilling boosted his share target by a loonie to $16. Analysts on average target the shares at $15.50. Mr. Schilling says in a note: "We view Kits Eyecare as being at the forefront of transforming the eye care industry. ... We are becoming increasingly confident that Kits Eyecare will be able to avoid a major impact [from tariffs] given the company's large exposure to contact lenses (86 per cent of total revenue), which is easier to shift distribution to the United States if need be. Furthermore, we highlight the possibility that Kits Eyecare could open up a micro optical lab in the United States for the glasses segment (14 per cent of total revenue with the majority of these sales occurring in Canada) without substantial capex given the company's ability to relocate a small portion of equipment from Canada. Even after accounting for a potential 25-per-cent tariff, Kits-branded glasses remain 75 per cent more affordable than the average prescription eye wear, emphasizing a strong value proposition."
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