Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 27 May, 25 | RR | Speculative Buy | USD 2.42 | USD 2.57 | USD 2.75 | Same day | 13.6% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
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.
Market Expansion Goal: The company aims to grow from 400 robot installations to over 1,000 by 2026, representing a projected 150% increase in deployment footprint within a year
Revenue Pipeline Growth: Richtech has secured $6.5 million in RaaS contracts, which will contribute to revenue over 36–72 months, indicating strong long-term customer commitment
Heavy Share Dilution Risk: With 114.8 million outstanding shares, investor returns could be diluted if significant equity is issued to fund growth or operations
Current Revenue Limitation: Despite its technological offerings, the company generated only $4.4 million in revenue over the past year, indicating limited current market penetration
Richtech Robotics faces significant investment risk due to its low current revenue relative to its valuation and high operational dependence on future contract fulfillment and large-scale adoption of robotic automation in traditionally human-centric service industries
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 2.42 | 2.16 | 2.57 | 2.75 |
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.
Innovative Business Model and Market Position
Richtech distinguishes itself as the first fully integrated AI-powered robotic solutions provider within the service sector. Their unique business model combines direct sales with a Robot-as-a-Service (RaaS) approach and proprietary robot-powered operations, ensuring long-term recurring revenue. As of April 2025, the company had installed over 400 robots, with plans to exceed 1,000 installations by 2026.
Addressing Labor Market Challenges
The U.S. service sector continues to experience significant labor shortages, with 38% of small business owners reporting unfilled job openings as of February 2025. Richtech’s automation solutions are positioned as cost-effective alternatives, reducing dependency on human labor. Their technologies allow service businesses to maintain quality and consistency while reallocating human capital to customer-centric roles.
Advanced Technology and Research Capabilities
Richtech invests heavily in R&D, focusing on artificial intelligence, edge computing, and cloud-based robotic management systems. Their innovations include multi-robot collaboration, intelligent sequencing, encrypted data management, and AI-powered customer interaction platforms. The company also holds numerous patents in robotic applications, reinforcing its commitment to technological leadership.
Financial Performance and Capitalization
For the trailing twelve months ending March 31, 2025, Richtech reported revenues of $4.4 million, supported by $6.5 million in secured RaaS contracts. With a strong liquidity position, the company held $31.8 million in cash and equivalents. As of the same date, the total outstanding common shares were 114.8 million, comprising both Class A and Class B shares.
Strategic Vision and Operational Model
Richtech's strategy includes cooperative operations with strategic partners, proprietary robotic service brands, and expanding its market reach through alliances with Fortune 500 companies. The long-term goal is to automate up to 80% of service industry roles, allowing businesses to focus on delivering superior customer experiences while improving margins and reducing overhead.
Technical Commentary:
RR's stock price has maintained above a key support level and is starting to trend higher, indicating the possibility of additional gains in the near term. The formation of higher lows signals sustained bullish momentum. The Relative Strength Index (RSI) stays above its midpoint, reflecting robust buying activity and an accelerating upward trend. Additionally, a recent volume spike suggests accumulation at current levels, strengthening a positive outlook. The stock has also reclaimed both its 21-day and 50-day Simple Moving Averages, further supporting the anticipation of continued upward movement in the short term.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Richtech Robotics Inc. (NASDAQ: RR) at its current market price of USD 2.42 as of May 27, 2025 (10:25 am PDT).
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) | Enterprise Value to Revenue (x) | |
|---|---|---|---|---|---|---|---|---|
| RR Richtech Robotics Inc. Class B Common Stock |
-0.2835 11.16% | 2.26 | - | - | 38.13 | 8.32 | 74.86 | |
| SIEGY Siemens AG ADR |
-1.01 0.83% | 120.03 | 17.07 | 15.75 | 1.88 | 2.76 | 2.37 | 11.38 |
| SMAWF Siemens AG Class N |
-0.2779 0.12% | 241.00 | 16.98 | 15.53 | 1.83 | 2.72 | 2.35 | 11.32 |
| GE GE Aerospace |
-0.76 0.31% | 243.40 | 12.87 | 26.60 | 1.61 | 4.69 | 1.61 | 8.43 |
| SBGSY Schneider Electric SA |
-0.545 1.08% | 49.89 | 25.90 | 20.92 | 3.12 | 3.98 | 3.50 | 17.37 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is 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.
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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