Analyst's Strong Negative Opinion On Nauticus Robotics: It Lacks Ability To Fund Fleet Build-Out

  • Chardan Capital analyst Brian Dobson downgraded Nauticus Robotics Inc KITT to Neutral from Buy and decreased the price target to $2.5 from $11
  • The analyst believes its prior estimates are unachievable as KITT lacks the capital to fund Aquanaut construction needed to build out its RaaS fleet rapidly. 
  • He anticipates the number of Aquanauts in the service fleet to remain roughly flat in 2024, which will hamper the service revenues growth trajectory through 2025.
  • Nevertheless, Dobson believes KITT's cutting-edge products have the potential to win major DoD contracts and expects it to continue pursuing DoD trial programs and monetize its RaaS fleet in the coming time. 
  • The analyst projects an uptick in government orders for the company post the next 12-18 months of DoD trials.
  • Dobson substantially reduced estimates for 2023 revenues to $13 million (from $67 million) versus the consensus of $20.8 million. 
  • Also, for 2024, Dobson now expects revenues of $31 million (down from $177 million earlier) compared to street estimates of $134 million. 
  • Price Action: KITT shares are trading lower by 5.19% at $2.19 on the last check Friday.
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