Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 19 Dec, 24 | RR | Speculative Buy | USD 1.24 | USD 1.34 | USD 1.46 | Same day | 17.7% |
Data Powered by EOD Historical Data (“EODHD”).
Richtech Robotics Inc. develops, manufactures, deploys, and sells robotic solutions for automation in the service industry. The company offers indoor transport and delivery, sanitation, and food and beverage automation solutions, such as ADAM and ARM worker robots; delivery robots, including Matradee, Matradee X, Matradee L, Richie, and Robbie; and cleaning robots comprising DUST-E SX, and DUST-E MX, as well as accessories, such as bus tubs, cup holders, magnetic tray cases, smartwatches, table location systems, and tray covers. It primarily serves restaurants, hotels, casinos, senior living centers, factories, and retail centers, as well as hospitals, and movie theaters. The company was formerly known as Richtech Creative Displays LLC and changed its name to Richtech Robotics Inc. on June 22, 2022. Richtech Robotics Inc. was incorporated in 2016 and is headquartered in Las Vegas, Nevada.
Enhanced Liquidity: Current Ratio of 3.27x in Q3 FY24 vs Industry Median of 2.16x
Higher Profitability: Gross Margin of 70.3% in Q3 FY24 vs Industry Median of 37.9%
Balance Sheet Risk: Debt-Equity of 0,26x in Q3 FY24 vs 0.14x in Q3 FY23
Operating Inefficiency: Asset Turnover of 0.11x in Q3 FY24 vs Industry Median of 0.18x
Richtech Robotics faces company-specific risks such as potential delays in product development, regulatory hurdles in emerging markets, and the challenge of maintaining competitive advantage in the rapidly evolving robotics industry.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 1.24 | 1.14 | 1.34 | 1.46 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Strategic Expansion: Richtech Robotics Inc. (Nasdaq: RR), a leading provider of AI-driven service robots, announced a significant expansion of its restaurant operations by signing a binding Letter of Intent with Ghost Kitchens America. The agreement grants Richtech exclusive rights to operate 20 Walmart-based restaurants in Arizona, Colorado, and Texas, managed through its subsidiary, AlphaMax Management LLC. By integrating robotics and AI cloud technology, the company aims to optimize restaurant operations, with each location projected to generate annual revenues between $700,000 and $2 million, highlighting strong growth potential for Richtech Robotics.
Partnership Growth: Richtech Robotics Inc. has signed a distribution agreement with Sproutmation, LLC, a provider of commercial robotics and automation solutions. As part of the partnership, Sproutmation has placed an initial order for 20 Scorpion units and committed to an annual sales target of 100 units. Richtech's President, Matt Casella, highlighted the collaboration as a strategic move to expand their distribution network and enhance access to automation solutions for organizations nationwide.
Innovative Launch: Richtech Robotics Inc. has unveiled Scorpion, an AI-powered, single-arm beverage service robot designed to provide personalized drink recommendations based on preferences and mood. Powered by NVIDIA AI technologies, Scorpion supports cocktail and wine tasting programs. The company has also signed a distributor agreement with Park 34 Liquor Store Inc., which committed to selling a minimum of 500 Scorpion units over five years, with an additional 500 units annually thereafter. Scorpion will debut on September 26th at the 1936 Wine and Spirits store in New York, offering wine and liquor tastings to customers.
Robotic Integration: Richtech Robotics Inc. has installed its advanced robotic beverage system, ADAM, at a One Kitchen in a Rockford, IL Walmart, marking the second installation in a planned rollout across 240 U.S. locations. In addition to ADAM, the Rockford location will feature Richtech’s Matradee L and DUST-E S robots. The initiative is managed by AlphaMax Management LLC, a subsidiary of Richtech Robotics, which oversees the integration of robots into One Kitchen operations, streamlining workflows, enhancing data analysis, and incorporating AI-driven solutions for optimized restaurant management.
Technical Commentary
The chart shows a bullish breakout as the price moves above the 21-day and 50-day moving averages, supported by increasing volume. The RSI at 72.79 indicates overbought conditions, suggesting potential for a short-term pullback or consolidation. Immediate support lies near 0.71 USD, with resistance around 2.00 USD. Overall, the trend is bullish, but traders should watch for confirmation of support or a continuation above recent highs.
Considering recent key business, financial updates, current trading levels, key business risks, and technical indicators analysis, a ‘Speculative Buy’ recommendation has been given on the Richtech Robotics Inc (NASDAQ: RR) at the closing price of USD 1.24, as on December 18, 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Specialty Industrial Machinery
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | ||
|---|---|---|---|---|---|---|---|---|
| RR Richtech Robotics Inc. Class B Common Stock |
0.02 1.60% | 1.26 | - | - | - | - | ||
| SIEGY Siemens AG ADR |
-0.82 0.83% | 98.25 | 17.07 | 15.75 | 1.88 | 2.76 | 2.37 | 11.38 |
| SMAWF Siemens AG Class N |
0.10 0.05% | 196.10 | 16.98 | 15.53 | 1.83 | 2.72 | 2.35 | 11.32 |
| GE GE Aerospace |
5.10 3.19% | 165.05 | 12.87 | 26.60 | 1.61 | 4.69 | 1.61 | 8.43 |
| SBGSY Schneider Electric SA |
-0.68 1.34% | 49.93 | 25.90 | 20.92 | 3.12 | 3.98 | 3.50 | 17.37 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 18, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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