Spectral AI: A Strong Buy on Commercialization Progress and Anticipated Revenue Growth

Analyst Ryan Zimmerman of BTIG maintained a Buy rating on Spectral AI (MDAI – Research Report), reducing the price target to $3.00.

Ryan Zimmerman has given his Buy rating due to a combination of factors including Spectral AI’s continued progress towards commercialization and positive developments in its product launches. In his evaluation, Zimmerman acknowledges a slight delay in the company’s US-based Burn pivotal trial, which has impacted R&D revenue timing. However, he maintains a positive outlook, highlighting the company’s reaffirmed guidance for a significant year-over-year increase in R&D revenue. Additionally, the successful placement of DeepView Systems in UK hospitals and the anticipation of further placements suggest a promising start to commercial revenue generation in the second half of the fiscal year.
Zimmerman’s confidence in Spectral AI’s stock is further bolstered by the company’s strategic milestones, including the advancement of its pivotal Burn AI trial in the US and the launch of the DeepView system in the UK for burns. The potential for commercial revenue by FY26 across all channels, coupled with substantial funding for the development of a handheld version of the DeepView system, underpins the Buy rating. Financially, Spectral AI’s first-quarter results demonstrated resilience despite a lower cash position, and Zimmerman’s valuation takes into account a discounted sales analysis projecting robust revenue growth in the coming years, justifying the price target adjustment to $3.

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Spectral AI (MDAI) Company Description:

Rosecliff Acquisition Corp I is a blank check company. It is formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.