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Investing.com -- Shares of (NASDAQ:BSGM) surged 42.2% following a substantial analyst upgrade informed by the successful acquisition of Streamex Exchange Corp. Ascendiant Capital analyst Edward Woo has reiterated a Buy rating on BioSig Technologies Inc and raised the price target from $2.50 to $10.
BioSig’s recent merger with Streamex, a tokenization company focused on commodities, has been a key driver of the stock’s movement. The transaction, completed on May 28, resulted in Streamex becoming a wholly owned subsidiary of BioSig, with Streamex shareholders owning roughly 75% of BioSig’s fully diluted common stock pre-transaction. This merger introduces a new leadership team, with Henry McPhie, Co-Founder and CEO of Streamex, stepping in as the Chief Executive Officer of the combined entity.
The acquisition of Streamex is a significant pivot for BioSig, which had previously announced a major retrenchment on February 20, 2024, due to lack of capital. The retrenchment included terminating a significant number of employees and substantially reducing operations. Woo believes the merger marks a renewed direction for the company as it aims to secure new capital and leverage Streamex’s innovative technology in the commodity markets.
Streamex is poised to revolutionize commodity finance with its infrastructure that brings commodity markets onto the blockchain, offering enhanced liquidity, accessibility, and efficiency. The merger aligns with Streamex’s vision of bridging traditional finance with the digital economy, potentially unlocking new investment opportunities.
Despite the positive outlook presented by the merger, Ascendiant Capital has adjusted its EPS estimates for BioSig to $(0.25) from $(0.20) for fiscal year 2025, maintaining revenue estimates at approximately $0. The analyst notes that these estimates do not yet reflect the Streamex acquisition until more information about the combined company’s financials and outlook becomes available.
Woo believes that the market potential for Streamex presents high rewards for the risks involved and considers the current valuation of BioSig’s stock to be attractive. The substantial increase in the price target to $10.00 is based on a net present value (NPV) analysis, reflecting the analyst’s confidence in the significant upside potential balanced against the high risks.
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