LXR – August 2021

Our turn-around investment thesis for this stock contends that LX can leverage its product-sourcing competitive advantage to supply a post-Covid spike in demand from wholesale channel partners plus its own Ixrco.com online store. Results for 2Q21 build on three key themes; 1) LXR’s strategic shift to online is finding success, 2) our wholesale thesis is playing out with revenue beats year to date, and 3) despite higher digital spending, profitability is imminent. We are encouraged by positive guidance momentum and suspect 2H results could beat. We see double-digit revenue growth, near-term positive EBITDA and wholesale customer adds as catalysts for the stock and continue to see potential for +100% upside over 1-2 years.

Download Report