Analyst Allen Klee of Maxim Group reiterated a Buy rating on Marpai (MRAI – Research Report), retaining the price target of $6.00.
Allen Klee has given his Buy rating due to a combination of factors, including Marpai’s strategic initiatives led by new management and the company’s potential for cost savings and growth. Despite a miss on revenue and adjusted EBITDA for 1Q24, Marpai has introduced significant cost-cutting measures and divested a non-core business. The new leadership team, with considerable experience in third-party administration, has refocused efforts on growth and customer support. Moreover, a substantial customer addition in the first quarter is expected to boost coverage significantly.
The company’s financial position is also a key consideration in the Buy rating. Marpai has raised capital through the sale of convertible notes, providing enough funds to maintain operations for the next year without incurring debt. The stock is currently undervalued compared to its peers, trading at a much lower EV/2025E adjusted EBITDA multiple. Allen Klee’s positive outlook is further reinforced by the management’s commitment, evidenced by their participation in recent capital raises and an incentive plan tied to EBITDA targets. These factors collectively suggest a promising turnaround and profitability, justifying the Buy rating.
Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MRAI in relation to earlier this year.
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Marpai (MRAI) Company Description:
Marpai Inc operates as a health plan company. It offers a health plan services system that addresses the problems of healthcare past and enables companies to provide healthcare to employees.
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