On Wednesday, H.C. Wainwright adjusted its price target for Versus Systems Inc. (NASDAQ:VS) shares, increasing it to $2.00 from the previous $1.50, while keeping a Neutral stance on the stock. This revision follows a significant 43.9% surge in the company's shares on Tuesday, contrasting with a modest 0.2% uptick in the Russell 2000 index.
The analyst cited the company's recent announcement of a major business restructuring, which took place after the market closed on July 1. The overhaul led to the immediate resignation of CEO Matthew Pierce, CFO Craig Finster, and three board members, including Chairman Keyvan Peymani.
Versus Systems has named Curtis Wolfe as the interim CEO. Wolfe brings a wealth of experience from the technology sector and is also a licensed attorney with a teaching position at the University of Miami School of Law.
The restructuring is seen as a potential positive development for Versus Systems, especially after a period of what the analyst described as "poor execution" over past quarters.
The company's first-quarter revenue in 2024 was reported at a mere $26,530, a stark decline from the $158,000 recorded the previous year, alongside a reduction in the number of customers served from 16 to 5. The analyst also noted the company's dwindling cash reserves, indicating the possibility of needing additional capital in 2024.
H.C. Wainwright acknowledges the inherent value in Versus Systems' technology and market opportunities but remains cautious, opting to observe the company's short-term revenue prospects before adopting a more positive outlook. The updated price target reflects the current trading levels of Versus Systems' shares, following the substantial increase on Tuesday.
In other recent news, Versus Systems Inc. has experienced a significant decline in revenue and customer numbers, as indicated by the latest financial data. The company reported a first quarter 2024 revenue of $26,530, a notable decrease from the $158,000 recorded in the same period the previous year. The reduction is largely due to a decrease in the company's customer base, which has fallen from 16 to five.
In response to these developments, H.C. Wainwright has revised its price target for Versus Systems to $1.50 from the previous $2.00, while maintaining a neutral rating on the stock. This adjustment reflects the financial challenges faced by the company, including a dwindling cash position despite a substantial cut in operating expenses.
The analyst from H.C. Wainwright expressed caution, noting a lack of clear revenue catalysts and a decline in customer accounts. The firm remains on the sidelines, awaiting more clarity on Versus Systems' near-term revenue prospects before adopting a more positive view. These are some of the recent developments impacting Versus Systems.
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