On Thursday, Maxim (NASDAQ:MXIM) Group initiated coverage on Rezolve AI Ltd. (NASDAQ: RZLV) with a Buy rating and set a price target of $10.00.
The research firm highlighted Rezolve AI's status as an innovative technology platform tailored for e-commerce that offers scalable and personalized customer experiences.
The company's unique technology and market knowledge have led to significant partnerships, including those with Microsoft (NASDAQ:MSFT) and Google (NASDAQ:GOOGL) in November 2024.
Rezolve AI, which was essentially pre-revenue in 2024, is expected by its management to reach an annual revenue run rate of $100M by the end of 2025.
Despite the optimistic outlook from the company's go-to-market strategy and the management's proven track record, Maxim Group remains cautious with its forecasts, The analysts said "While encouraged by the company's go-to market strategy and management's strong track record, we are taking a conservative approach with our forecasts. We project the target to be reached in 2H26."
Maxim Group also anticipates that Rezolve AI's adjusted EBITDA losses will increase through 2026 as the company continues to invest in growth. As of June 30, 2024, Rezolve AI reported having $0.1M in cash and a debt of $45.4M.
In December 2024, the company successfully raised $15M in capital. However, Maxim Group believes that Rezolve AI will require additional funding in the second half of 2025 to support its expansion plans.
In terms of valuation, the shares of Rezolve AI are currently trading at 7.6 times enterprise value to sales based on Maxim Group's 2026 estimates, which is below the peer average of 5.4 times.
The $10.00 price target set by Maxim Group is derived from a discounted cash flow (DCF) analysis and implies a 28.3 times multiple on projected 2026 enterprise value to sales.
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