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Investing.com -- Bleichroeder Acquisition (NASDAQ:BACQ) stock soared 12% Thursday after Citron Research highlighted the company as a compelling investment opportunity in the autonomous flight technology sector.
The SPAC, which announced a definitive business combination agreement with Merlin Labs in August, was described by Citron as "the most compelling risk/reward stock in the market today." Citron suggested the stock could potentially triple from its current levels, citing Merlin’s established Pentagon contracts and practical applications in defense.
Citron’s bullish case contrasts Merlin’s $800 million pre-money valuation (approximately $925 million post-money) with quantum computing companies trading at significantly higher multiples. The research firm specifically mentioned that Merlin has secured over $105 million in Pentagon contracts and is currently implementing its technology across five different military aircraft.
The research highlighted Merlin’s ongoing partnerships with major defense contractors including GE Aerospace and Northrop Grumman, as well as specific military programs such as C-130J autonomy deals with USSOCOM and KC-135 programs with the Air Force.
Citron’s report emphasized the strategic importance of autonomous military aviation, comparing it to essential national security priorities like rare earth supply chains and domestic chip manufacturing, while noting the SPAC’s $10 floor provides investors with a built-in hedge.
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