See what I mean? Volatility can set this stock off on furious short-term breakouts.
#2 Potential Breakout Catalyst For PIXY - $50 Price Target From Zacks Small-Cap Research
In January 2020, an analyst from Zacks released a research report on PIXY highlighting the company's tremendous upside potential.
Obviously, this report was released pre-pandemic, but Zacks sees and reports on the potential PIXY provides.
Here are some key details of how they came to the $50 target:
- ShiftPixy is taking a unique approach to solving the human resource management problems of the gig economy. Its solution is to have its customers move their workers over to be employed by ShiftPixy, which then acts as a staffing agency for the customer. By pooling the employees of many smaller companies, ShiftPixy can administrate the human resource management function with economies of scale. In return for providing insurance, payroll processing, benefits, and compliance services these enterprises pay ShiftPixy a fee based on their payroll, that is much less than the cost of doing these functions in-house.
- ShiftPixy first targeted the underserved restaurant and hospitality industry vertical, particularly small, and medium businesses (SMBs) with 100-500 employees. These companies are the main victims of increasing regulation. As of August 31, ShiftPixy served about 246 clients who utilized over 13,000 workers. We believe there are three million restaurant and hospitality entities with under 500 employees in the US and we estimate this vertical market size is $3Bn in service fee revenue, or $30Bn in gross billings including wages.
- Another differentiator for ShiftPixy is its mobile app that has been launched and is rolling out capabilities. It is being used now to onboard new employees. It has added the car insurance metering product for deliveries and scheduling between restaurants and shift workers by matching qualified workers to shifts, while giving workers access to their schedules and earnings in real-time which are both being tested by a few customers. Later it will also create a social job-seeking network for matching job openings with workers. Like a match.com it will let employers find shift workers to fill available hours and workers to find jobs. This can be used not only to fill temp or shift work but as a resource for permanent hires. Since all the workers in the network are already employees of ShiftPixy, a restaurant can get a fill in or even hire someone without any additional paperwork or onboarding. In the future this app will allow non-ShiftPixy employees to search for job opp's.
- ShiftPixy is working to further develop its custom mobile and cloud platforms and continue its geographic roll out. It already has offices in Southern California, New York City, Austin, Chicago, and Orlando. It plans to open offices in Miami and San Francisco.
- Management has significant experience in managing a number of staffing and insurance companies targeted at small business and created ShiftPixy to address the unique needs of the emerging gig economy.
- Based an average comparable multiple of 1.1 times enterprise value to calendar 2020 revenues, we believe the company could be worth at least $46Mn or $50.00 per share.
From current levels (Tuesday's 7/28 close of $4.84), PIXY is displaying a staggering upside potential of 933% to this price target.
Yes, you read that percentage correctly...
#3 Potential Breakout Catalyst For PIXY - 2020 Q3 Results
Here are the highlights from this month's press release:
- Significantly improved balance sheet with cash position of $10.8Mn and no long-term debt as of May 31, 2020 compared to cash of $0.4Mn and long-term debt of $3.6Mn as of February 29, 2020.
- Successfully closed $12Mn public equity offering on May 26, 2020 and an additional $1.3Mn through July 7, 2020.
- Resolved NASDAQ Delisting issue; cleared by NASDAQ after recapitalization.
- Fully converted all convertible debt outstanding.
- Despite the impact of CV-19, our customer count continues to increase with approximately 81 clients representing over 300 customer locations and 2,700 billed employees, an increase of 106% over Q3 2019.
“Despite a significant impact on our customers from the shutdown due to the CV-19 pandemic, we are well positioned to provide them key support services. With our renewed focus on franchise operators as our target customers in the restaurant space, we see an increased need for the delivery features of our application as food operators increasingly move towards delivery as an increased source of revenues. We continue to see strong demand and new opportunities,” stated Chief Executive Officer, Scott Absher. “Our recapitalization and improved balance sheet have been instrumental in helping us address opening and re-opening opportunities with larger customers and we are excited to have a clean capital structure. CV-19 related delays in the launch of our mobile application solution are now behind us as our team has migrated to add features that will provide us with new revenue sources from new markets. Our internal sales team has been streamlined and focused to take advantage of the application and we are extremely excited about our near-term opportunities for significantly larger customers in new markets.”
#4 Potential Breakout Catalyst For PIXY - The Ick Factor
The Ick Factor: Why Restaurant Brands Need to Think Ahead
Use of third-party services spark food safety concern, highlights importance of native delivery
IRVINE, Calif., May 21, 2020 (GLOBE NEWSWIRE) -- ShiftPixy (NASDAQ: PIXY), a California-based gig engagement platform provider, today announced a new initiative as part of its Restaurant Resilience Plan, to help restaurants reclaim their brand and customer relationships via native delivery amid CV-19. Consumers now have a heightened sensitivity regarding the safety of their food, and higher standards for the personnel delivering it. ShiftPixy’s native delivery solution enables restaurants to repurpose their own, food safety trained staff to facilitate deliveries, reclaim their brand and forgo their reliance on third-party platforms. Today, many restaurants are reliant on third-party delivery partners, but the CV-19 pandemic has sparked concern for multi-unit franchises and the brands they operate under, leading them to reevaluate who is managing their customer relationships. For operators now relying largely on off-premise orders, it’s more vital than ever for vetted employees, trained in social distancing standards and sanitation procedures, to deliver food to the end consumer.
“Through our ongoing conversations with leaders in the fast food industry, we’ve heard growing concern about who is bringing the consumers their food, and whether they are properly trained to represent the brand, particularly during the CV-19 pandemic,” said ShiftPixy co-founder and CEO, Scott Absher. “Ultimately, it’s in the restaurant’s best interest, as well as the customer’s, for uniformed food safety trained employees of the brand itself to facilitate last-mile delivery.”
The c-virus has affirmed the importance of native delivery, not only for the sake of restaurant operators’ profits, but in order for them to deliver a safe and superior customer experience and keep their staff employed during these difficult times. This reality is what inspired ShiftPixy’s Restaurant Resilience Plan.
ShiftPixy’s turn-key, end-to-end native delivery solution is available now to help restaurant operators repurpose their existing staff for deliveries, as well as establish a white-label online presence, eliminating all necessary reliance on third-party delivery partners. Ultimately, this approach to human capital, customer engagement and delivery will help restaurants retake control of their brand.
Coverage officially initiated on PIXY.