H.C. Wainwright analyst Scott Buck reiterated the Buy rating on Phunware, Inc. (NASDAQ:PHUN), adjusted the price target to $12 from $1, following the company’s recent 1-for-50 reverse share split.

Yesterday, Phunware reported quarterly continuing operations losses of $(17.62) per share.

While revenue is likely to remain somewhat disappointing in the near term, the analyst highlights the firm’s plans for a strategic shift in sales methodology.

In terms of go-forward strategy, Phunware expects to leverage the success of its location-based platform in the hospitality, healthcare, and corporate campus verticals, Buck notes. 

Specifically, the analyst recommended investors to build a position ahead of improving operating results in 2H24 and 2025.

According to the analyst, while the path to profitability may remain somewhat unclear, the new management team now has the resources available for multiple quarters to prove out it’s selling strategy. 

Buck now models 2024 revenue of $6 million, up 25.0% from restated 2023 levels. The analyst projects a 2025 revenue of $10 million.

On the flip side, Roth MKM analyst Darren Aftahi lowered the price forecast on Phunware to $20 from $25 (split adjusted).

Aftahi writes that sales may take time to materialize. However, the analyst keeps a Buy rating, citing that the company has a renewed focus on hospitality, improving its sales efforts and leveraging partnerships as a Trojan horse, which, if proven out, could later be transferred to the healthcare vertical. 

Lastly, the company’s crypto angle could see a new revival, something that hardly gets any credit. Aftahi projects 2025 revenue of $8.5 million.

Phunware has ties to Donald Trump dating back to 2020 when the company announced that it was working on the development, launch and ongoing management of the Trump-Pence 2020 Reelection Campaign’s mobile application portfolio.

Price Action: PHUN shares are trading lower by 11.8% to $9.17 on the last check Wednesday.