Analyst Swayampakula Ramakanth from H.C. Wainwright maintained a Buy rating on Spectral AI (MDAI – Research Report) and keeping the price target at $3.50.
Swayampakula Ramakanth has given his Buy rating due to a combination of factors that highlight Spectral AI’s promising future prospects. The company is poised to transition into a commercial-stage entity, with plans to submit a 510(k) de novo application to the FDA for its DeepView system by the end of the second quarter of 2025. If approved, this could lead to a US market launch in 2026, marking a significant milestone for the company. Additionally, the DeepView system has demonstrated statistically significant results in predicting burn wound healing outcomes, which bodes well for its commercial success.
Furthermore, Spectral AI is actively working on the DeepView Snapshot M, a portable diagnostic device aimed at military and emergency care settings, with deployment anticipated in 2027. Financially, the company reported higher-than-expected revenues for the fourth quarter of 2024 and has secured sufficient funding to support operations into the second quarter of 2026. The valuation, based on a net present value analysis, supports a 12-month price target of $3.50, reinforcing the Buy recommendation. Despite potential risks in clinical, regulatory, and competitive areas, the overall outlook remains positive.
In another report released on March 28, BTIG also maintained a Buy rating on the stock with a $3.00 price target.