LXR – May 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. We have three key take-aways from recent results; 1)

LXR’s strategic shift to online is finding success, 2) our wholesale thesis is playing out with a revenue beat year to date, and 3) LXR has an evident path to profitability. We are encouraged by the mid-2021 update that e-commerce trends remain strong into 2Q21 and wholesale order backlog is still growing. 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.

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