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Deutsche Bank Initiates Coverage of Metaverse Play Matterport, Sees Near 50% Upside

The bank initiated coverage with a buy rating and $14 price target.

Deutsche Bank initiated coverage of metaverse play Matterport with a buy rating, calling the company a leader in the digitization of the built world.

  • The bank’s analysts led by Bhavin Shah started coverage on Tuesday with a price target of $14, implying a 46% upside from the recent close.
  • Matterport’s spatial data platform enables customers to create a digital twin of any space or building with relative ease, and this should drive impressive growth over the foreseeable future, the note says.
  • Strong mindshare, a robust capture services network and a freemium model are meaningful network effects, which should accelerate the company’s competitive positioning, the report added.
  • Much of the real estate industry has lagged in innovation, and these underlying industry dynamics bode well for Matterport, Deutsche Bank said.
  • The market opportunity is sizeable, with the global opportunity at $240 billion and an $11.2 billion total addressable market in the U.S. alone, it added.
  • The bank sees a significant long-term opportunity for Matterport to provide insights and to monetize the spatial data on its platform.
  • Matterport shares closed 1.4% lower at $9.59 on Tuesday.

This article was originally published on Coindesk by Will Canny

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