Presto Automation Stock Skyrockets, Analyst Finds Drive-Thru AI Ramp-Up Looks Enticing - Presto Automation (NASDAQ:PRST)

Chardan Capital analyst Brian Dobson upgraded Presto Automation Inc PRST to Buy From Neutral at an increased price target of $5 (from $4.25).
The analyst is bullish on PRST's interim CEO's focus on boosting its drive-thru AI business segment, which includes the recent deal with CKE Restaurants Holdings, Inc.
In early May, PRST disclosed expanding its partnership with CKE Restaurants to roll out an AI-powered solution to automate voice ordering nationwide at CKE's Hardee's and Carl's Jr. drive-thru locations.
The analyst cites it as the largest deal in terms of total potential locations (Hardee's: 1,600 and Carl's Jr: over 1,060).
Consequently, Dobson raised the estimate for location growth, expecting PRST to add 650 new locations (vs. 500 prior) in 2024 and 800 (vs. 600 earlier) in 2025.
The analyst is also increasing the revenue estimate for 2024 by 2% and 2025 by 11%.
However, Dobson lowered the 2023 revenue estimate to $27.7 million (from $30.1 million), reflecting revenue guidance cut by PRST to $26 million-$28 million on accounting reclassification.
Price Action: PRST shares are trading higher by 20.2% at $3.27 on the last check Thursday.