Source: Unsplash

Alliance Global Partners analyst Brian Kinstlinger is dropping coverage of Vuzix (VUZI) after the shares have increased 100% year to date and more than 1000% in 12 months.

While he views the company as a "leading manufacturer of augmented reality smart glasses," and thinks such glasses will "eventually be a megatrend," his Q4 and 2021 consensus revenue estimates are "much lower than they were at the beginning of 2020" and he "cannot justify a market cap of about $1 billion," Kinstlinger tells investors.

The firm's previous estimates and rating for Vuzix should no longer be relied upon, Kinstlinger added.