AI beauty solutions developer Perfect Corp rises on news of new partnership

Shares of Perfect Corp, which provides AI solutions to fashion brands and consumers, rose more than 9% on Monday, July 1. That day, the company announced a new partnership for the Japanese wig retailer NAO-ART to use its technology for virtual try-ons.

Details

On Monday, Perfect Corp’s stock jumped 9.41% on the Nasdaq to $2.21 per share. After the session ended, it gained another 1.36% in after-hours trading. Still, over the past year, the company has lost more than 50% in market value.

Monday’s gains came after Perfect Corp announced a partnership with the Japanese wig retailer NAO-ART. Under the deal, Perfect Corp will provide NAO-ART with a virtual try-on tool for wigs. NAO-ART customers will thus be able to see how they look in 53 wigs, including medical wigs.

NAO-ART had long explored such a service but decided against using traditional AR technology due to the try-on feeling unnatural, stated Hiroki Shintoku, the president of the Japanese company.

What Perfect Corp does

Perfect Corp develops AI and AR solutions for the beauty and fashion industries in two segments: for brands (B2B) and for consumers (B2C). For brands, it sells products offering virtual skin diagnostics, cosmetic recommendations and virtual eyewear fitting. Six YouCam apps are available to consumers, each offering different functionalities. For instance, one app allows users to “change outfits” in photos and alter the background.

In the first quarter of 2024, Perfect Corp’s revenue was $14.3 million, an increase of 17.7% compared to the previous year.

Analyst insights

According to MarketWatch, one analyst covers the company. His recommendation is to hold the stock, with a target price of $3.06, indicating upside of nearly 40% from the current levels.