- Chardan Capital analyst Brian Dobson downgraded Nauticus Robotics Inc (NASDAQ:KITT) to Neutral from Buy and decreased the price target to $2.5 from $11.
- The analyst believes its prior estimates are unachievable as KITT lacks the capital to fund Aquanaut construction needed to build out its RaaS fleet rapidly.
- He anticipates the number of Aquanauts in the service fleet to remain roughly flat in 2024, which will hamper the service revenues growth trajectory through 2025.
- Nevertheless, Dobson believes KITT’s cutting-edge products have the potential to win major DoD contracts and expects it to continue pursuing DoD trial programs and monetize its RaaS fleet in the coming time.
- The analyst projects an uptick in government orders for the company post the next 12-18 months of DoD trials.
- Dobson substantially reduced estimates for 2023 revenues to $13 million (from $67 million) versus the consensus of $20.8 million.
- Also, for 2024, Dobson now expects revenues of $31 million (down from $177 million earlier) compared to street estimates of $134 million.
- Price Action: KITT shares are trading lower by 5.19% at $2.19 on the last check Friday.
CURO Group And 2 Other Stocks Under $3 Insiders Are Aggressively Buying
The Dow Jones closed lower by over 100 points on Wednesday. When insiders purchase or sell shares, it indicates their confidence or concern around the company's prospects. Investors and traders interested in penny stocks can consider this a factor in their overall investment or trading decision.
