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Investing.com - Freedom Broker downgraded Richtech Robotics Inc. (NASDAQ:RR) from Buy to Sell on Wednesday, while maintaining its price target of $2.50. According to InvestingPro analysis, the stock is currently trading above its Fair Value, supporting the downgrade thesis.
The research firm cited the recent surge in Richtech Robotics stock price to $3.15, which it believes has outpaced the company’s fundamental performance. The stock has indeed shown remarkable momentum, gaining over 57% in the past week and nearly 100% over the last year.
Freedom Broker noted that the stock’s current valuation leaves limited upside potential based on its assessment of the company’s prospects.
The downgrade also reflects concerns about the risk of a near-term price correction as momentum fades in the robotics company’s shares.
The firm indicated it is waiting for tangible revenue contributions from Richtech’s new retailer agreement before reconsidering its rating on the stock. Despite maintaining an impressive 76% gross profit margin, the company remains unprofitable over the last twelve months.
In other recent news, Richtech Robotics Inc. has made significant strides with a series of strategic agreements and developments. The company entered into a two-year Master Services Agreement with a major global retailer, which allows Richtech Robotics to undertake various projects under additional statements of work. This agreement automatically renews annually unless terminated by either party. Additionally, Richtech Robotics secured a sales agreement worth over $4 million with Beijing Tongchuang Technology Development Co., Ltd. through its Chinese joint venture, which is expected to boost the company’s fourth-quarter revenue and generate recurring income.
Furthermore, Richtech Robotics formed a Strategic Cooperation Agreement with Beijing City of Design Development Co., Ltd., focusing on joint R&D and commercialization of service-robotics solutions. This partnership aims to establish a Beijing Foreign-Invested R&D Center to develop domain-specific AI models and robotic systems. In another development, Richtech’s AI-powered robot ADAM has successfully served over 16,000 drinks at the company’s café in Las Vegas since its opening in February 2025. These recent developments highlight Richtech Robotics’ ongoing efforts to expand its market presence and technological capabilities.
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