A2Z Smart Technology Corp. (AZ) PT Raised to $20 at Benchmark

Benchmark analyst Daniel Kurnos raised the price target on A2Z Smart Technology Corp. (NASDAQ: AZ) to $20.00 (from $18.00) while maintaining a Buy rating.

The analyst commented, "We think it is time to get refocused on A2Z (AZ: Buy, PT from $18 to $20) as there is once again enough smoke to suggest a real (positive) fire may be right around the corner. We have been relatively silent up until now as our belief in the technology and the long-term value warred with the likelihood that cash might run out before they could reach any of their goals. Since hitting a low of nearly $0.30, not only have shares rallied back to over $7, but several raises along the way – with what we believe is the significant distinction of money coming to the company rather than them looking explicitly for it – have put the Company in a fully funded position (estimated $40 million in cash) for at least the next 24-36 months if only status quo were maintained. Of course, we would not be publishing now if we expected status quo to be only maintained, as rumors of a combination of strategic investment and new major wins, along with the support for the stock price despite the market turmoil, gives us a strong belief that a major inflection point could be rapidly nearing. We get it – we have been here before with Carrefour, but there is one major difference: the landscape has evolved substantially in A2Z’s favor, with the major heavyweights struggling to produce quality, scalable competitive offerings, while A2Z may be nearing a leadership position from a technological and installable perspective. Retailers also have had time to review and consider adopting this next wave of smart technology, and it feels like the dam is about to burst, with A2Z leading the coming land grab. Nothing is done until the ink is dry, but the risk/reward here is still just as massively slanted to the upside. We have published some hypothetical numbers to illustrate how quickly this scales via even just one large order, noting that the payback period per cart is now down to 6 months and coming in further, and with each cart set to produce over $150 per month in high-margin, unencumbered revenue for remainder of its useful life. The real crazy part? Our numbers could prove substantially conservative."

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