Roth MKM analyst Nick Anderson, in a research report published on June 7, 2024, reiterated a Buy rating and a 12-month price target of US$11.00 on Ispire Technology Inc. (ISPR:NASDAQ) following the company's recent announcements focused on expanding its global presence as a leading vape hardware technology provider.
"ISPR continues to expand globally, with recent announcements focusing on building a global brand/distribution as a leading vape hardware technology," Anderson noted. "The company secured a meaningful ODM relationship with a leading global e-cigarette brand and expects orders leading to US$100M in annual revenue."
Ispire Technology has secured an original design manufacture (ODM) relationship with a leading global e-cigarette brand, which is expected to result in the supply of more than 33 million units in FY25, generating approximately US$100 million in annual top-line revenue.
"We believe the changing regulations around vape products (banning of disposable vapes in EU countries) and ISPR's broad offerings of vape device systems (pods and refillables), along with new age-verification technology, will lead to ongoing ODM agreements as vape brands look to higher-quality device design," Anderson stated.
The analyst also highlighted Ispire Technology's recent launch of Burna Boy's BRKFST lifestyle brand in over 750 stores in Africa, with plans to expand in the Middle East and Europe.
"Expanding ODM, third-party brand partnerships and its own Aspire brand globally should lead to higher top-line growth as partnerships and products launch," Anderson commented.
Ispire Technology continues to focus on developing authentication and age-verification technology for both the e-cigarette and cannabis vape markets. While the analyst initially expected age verification at the point of use to be essential for a potential successful FDA PMTA application and e-cigarette product approval in the U.S. nicotine market, he now sees the opportunity for Ispire Technology to license its age-verification technology to large e-cigarette brands.
The company has also strengthened its executive leadership team, with the appointment of Jim McCormick as CFO, John Patterson as Sr. VP of Int'l Nicotine, Dennis Lider as Sr. VP of Cannabis Product Sales, and David Hessler as Sr. VP of Operations. "The hires upgrade their senior-level positions as the company grows and expands into a larger company," Anderson noted.
Roth MKM's US$11 price target on Ispire Technology shares is based on the firm's valuation approach, which considers the company's growth potential, expanding global opportunities, and the strength of its vape hardware technology offerings.
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Disclosures for Roth MKM, Ispire Technology Inc., June 7, 2024
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Disclosures: Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from Ispire Technology Inc..
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual Page 4 of 5 ISPIRE TECHNOLOGY INC. Company Note - June 7, 2024 results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2024. Member: FINRA/SIPC.
