Richtech Robotics: Transition To RaaS To Drive Accelerating Demand For Robotics, Says Bullish Analyst

Richtech Robotics Inc's RR stock offers investors an "attractive opportunity" to gain exposure to the rising demand for service robotics, according to HC Wainwright.

The Richtech Robotics Analyst: Analyst Scott Buck initiated coverage with a Buy rating and price target of $3.50.

The Richtech Robotics Thesis: Buck said in the initiation note that the company could see increasing adoption of service robots over the next several years, driven by improving technologies, labor shortages, and its transition to the Robot-as-a-Service (RaaS) model.

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The RaaS model "lowers the entry point for customers by putting them on a multi-year contract, moving a high upfront capital investment to a more manageable monthly operating expense," he explained.

The RaaS transition should meaningfully increase customer adoption rates and provide better revenue visibility, "given the recurring nature of lease revenue," the analyst stated. These, at approximately 70% gross margin, should "attract new investors," Buck added.

Although the stock has lost around 33.7% year to date, Buck said it offers "an attractive entry point ahead of more positive news flow and improving financial performance as the business scales. “

RR Price Action: At the time of publication on Friday, shares of Richtech Robotics had risen by 4.53% to $1.87.

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