Roth MKM analyst Rohit Kulkarni initiated coverage on Rezolve AI Limited RZLV with a Buy rating and a price forecast of $4.
Investing in small-cap AI companies like Rezolve carries risks, but potential catalysts are expected following recent deals with Microsoft Corporation, Alphabet Inc., and Tether Wallet, Kulkarni writes.
After conducting diligence calls with Microsoft and benchmarking large language models (LLMs), the analyst’s confidence in Rezolve’s near-term trajectory has increased.
The analyst highlights three key factors that boost confidence in Rezolve. Microsoft has committed $130 million in sales spend and agreed to send 10 leads per month.
The Google partnership could generate 50% of Rezolve’s AI commerce revenue, and Rezolve operates on both Azure and Google Cloud Platform, making it cloud-agnostic.
Kulkarni tested Rezolve’s “brainpowa” LLM with real-world retail data and compared it to ChatGPT.
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The analyst found that brainpowa outperformed baseline models like GPT-4 on e-commerce queries due to its training on comprehensive e-commerce datasets for product, user understanding, and real-time consumer Q&A.
The analyst highlights several investment risks, including dilution from de-SPAC warrants with a price target based on 231 million FDSO, compared to 172 million basic shares.
Kulkarni also notes the company’s early-stage AI startup status, with a $1 million ARR deal signed in November and over 120 active leads or pilots. Additionally, the analyst points out the company’s $41 million debt, due starting in the second half of 2026, and operating expenses of around $1.1 million per month, with expectations of break-even at $15 million ARR by the third quarter of 2025.
Price Action: RZLV shares are trading lower by 0.52% to $1.935 at last check Tuesday.
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