Virtualware: LKS Next Initiates Coverage with an Average Target of 6.3 Euros
On May 20, the analysis firm LKS Next released its first coverage report on Virtualware, a company specializing in extended reality software for the industry. The analyst sets an average price target of 6.3 euros per share, compared to a current price of 5.95 euros at the time of the report.
Contracts Accelerating Since the Start of the Year
The report highlights the commercial momentum of the group in the first quarter of 2026. Bookings reached 2.5 million euros during this period alone, with approximately 29% generated in the United States. This annualized rate would exceed 10 million euros, surpassing the record of 8 million euros recorded for the entire year of 2025. This acceleration is a central element of the investment thesis constructed by LKS Next, suggesting a change of pace in Virtualware's ability to sign new clients.
Margin Trajectory and Projected Recurring Revenues
LKS Next analysts forecast a revenue increase from 4.3 million euros in 2025 to 5.7 million in 2026, and then to 8.4 million in 2028. EBITDA margins are expected to widen, moving from 14.5% in 2025 to 25.6% in 2026 and 46.6% in 2028. Concurrently, annual recurring revenues from subscriptions (ARR) are projected at 4.9 million euros in 2028, compared to 1.9 million in 2025. These projections reflect an assumption of increasing recurrence in the business model and an improvement in profitability over the years.
