Knightscope: Slow Rise Of The Robots (Rating Upgrade)
- Knightscope has started announcing a long list of new contracts with a large amount of machine orders.
- The autonomous security robots offer a promising business model, but the company has so far failed to generate material financial results.
- The stock isn't appealing at this valuation closer to 10x sales until the company can start topping financial targets with material organic growth.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
As the world moves towards autonomous vehicles and robots, Knightscope (NASDAQ:KSCP) offered one of the most promising investment options in the space. Unfortunately, the company came out extremely promotional while lacking contracts in scale to build a meaningful business. My investment thesis is shifting Neutral on the company following the announcement of a long list of new contracts.
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