Metaverse Here We Come: Why This Matterport Analyst Is Bullish As Facebook Rebrands

Meta is the new name for social media platform company Facebook Inc (NASDAQ: FB). The name change comes as the company bets on the growth of the metaverse and augmented and virtual reality becoming more mainstream in the future.

An analyst is calling out a name to watch as a winner in the space on the heels of the Facebook news.

The Matterport Analyst: Wedbush analyst Daniel Ives has an Outperform rating on Matterport Inc (NASDAQ: MTTR) and $26 price target.

Related Link: 10 Augmented And Virtual Reality Stocks To Watch On The Heels Of Facebook’s Meta Rebrand

The Matterport Takeaways: Ives highlights a partnership announced between Matterport and Facebook earlier this year as a key event that could get more attention from investors. The partnership was for creating the largest-ever dataset of 3D indoor spaces via Facebook AI Research.

“We believe this was the first step towards a much broader Facebook and Matterport relationship as Zuckerberg & Co. head down the metaverse path,” Ives said.

Matterport has a “vast 3D-data library,” which Ives calls unmatched in the industry. The company is mentioned as a play in the growing market and important for real estate and other sectors.

“We continue to believe Matterport is in the early innings of a massive growth story playing out over the coming years.”

Ives calls the stock under the radar based on investor conversations and said he likes the stock heading into 2022, with metaverse plays grabbing investors' attention.

Growth could come from the company as its free to paid conversion model is further realized.

A total addressable market size of $240 billion is cited by the analyst and a market share of under 1% for Matterport gives the company room to expand, according to Wedbush. 

The price target of $26 is based on a multiple of 13x 2023 expected revenue.

MTTR Price Action: MTTR shares gained 18.16% Friday, closing at $22.45.