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PERF: Rising Profit Margins And Luxury Partnerships Will Drive Further Upside

Regulatory And Economic Risks Will Impede Progress Though Hope Emerges

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PERF
AnalystLowTarget
Not Invested
Published 23 Jun 2025

Update shared on 14 Dec 2025

Fair value Increased 14%
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AnalystLowTarget's Fair Value
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1Y
-21.1%
7D
-2.8%

Analysts have raised their price target on Perfect, increasing their fair value estimate from approximately 3.17 dollars to 3.60 dollars. They now expect stronger profit margins and are willing to assign a higher future earnings multiple, despite slightly moderating revenue growth assumptions and a marginally higher discount rate.

What's in the News

  • Perfect Corp. reaffirmed its 2025 revenue guidance, targeting 13.0% to 14.5% year over year growth, signaling confidence in its near term outlook (Company guidance).
  • The company expanded its luxury footprint through a new collaboration with Louis Vuitton for the launch of La Beauté Louis Vuitton, deploying AI and AR powered virtual try on experiences across 33 countries (Client announcement).
  • Perfect Corp. unveiled a major update to its Online Service for Virtual Glasses Try On, adding a digital library of over 13,000 pre digitized glasses to speed retailer onboarding and improve the consumer shopping journey (Product announcement).
  • The company announced a collaboration with Tom Ford Fashion to integrate 3D AR Virtual Try On eyewear technology into Tom Ford’s e commerce channels in the U.S., Canada, and Europe by the end of 2025 (Strategic alliance).
  • Perfect Corp. continued to enhance its AI creativity suite with major updates to YouCam AI Pro and the launch of an AI Editing Agent in YouCam Perfect, broadening text to image and text to video capabilities and enabling conversational, agent driven photo editing (Product announcements).

Valuation Changes

  • The fair value estimate has risen modestly, increasing from approximately $3.17 to $3.60 per share.
  • The discount rate has edged up slightly, moving from about 8.95% to roughly 8.98%.
  • The revenue growth assumption has eased marginally, decreasing from around 13.77% to about 13.54% annually.
  • The net profit margin assumption has improved moderately, rising from roughly 12.08% to about 12.88%.
  • The future P/E multiple has increased slightly, moving from approximately 38.7x to about 40.7x forward earnings.

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