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STRC Stock on Its Way to Commercialization
Stock Analysis & Ideas

STRC Stock on Its Way to Commercialization

Sarcos Technology and Robotics Corporation (STRC) is engaged in the development of industrial robotics. These technologies help workers perform tough and dangerous tasks accurately and safely. The company is based in Salt Lake City, Utah.

The outlook of a positive sector should be enough to drive Sarcos’ share price up in the upcoming years. Given the current estimates of the future demand for service robotics, I am certainly bullish on this stock.

Q3 Earnings Results

Sarcos Technology and Robotics closed its quarterly reporting period on September 30, its first earnings results as a U.S.-listed company, as its shares first traded on the Nasdaq on September 27, 2021.

As commercial production of the industrial exoskeleton and robotic avatar systems will begin sometime in late 2022, the company is not yet generating any revenue. So, no profit either.

The third quarter of 2021 ended with an adjusted net loss of $0.08 on total revenue of $1.13 million.

The balance sheet on September 30 had approximately $240 million in cash and equivalents, which Sarcos evaluates as sufficient to reach the commercial stage.

Sector Outlook

It is expected that the robotics market, spurred by a strong demand for highly skilled service robots, to more than double its current level by 2026, reaching nearly $75 billion globally.

The current supply shortage of these specific technologies is preparing Sarcos and other developers for a future as industry leaders, giving them a strong advantage over other market players.

Wall Street’s Take

In the past three months, three Wall Street analysts have issued a 12-month price target for Sarcos Technology and Robotics Corporation. The company has a Moderate Buy consensus rating, based on one Buy and two Holds assigned.

The average Sarcos Technology and Robotics Corporation price target is $11.33, implying 22.5% upside potential.

Summary 

In about a year, the company will produce its first saleable technologies, after which the stock should get a strong boost towards higher prices.

Disclosure: At the time of publication, Alberto Abaterusso did not have a position in any of the securities mentioned in this article.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates Read full disclaimer >


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