Versus Systems Inc. (VS) PT Raised to $2 at H.C. Wainwright

H.C. Wainwright analyst Scott Buck raised the price target on Versus Systems Inc. (NASDAQ: VS) to $2.00 (from $1.50) while maintaining a Neutral rating.

The analyst commented: "Shares of Versus Systems, Inc. increased 43.9% during Tuesday trading versus a 0.2% increase in the Russell 2000. Share appreciation was driven by an announced restructuring of the business after the market close on July 1. As part of the restructuring, CEO Matthew Pierce, CFO Craig Finster, and three members of the board of directors, including Chairman Keyvan Peymani, have resigned effective immediately. The company has announced Curtis Wolfe as the interim CEO. Mr. Wolfe has years of experience at technology companies, including online media, ad technologies, and video games. Further, he is a licensed attorney who teaches Transactional Skills (M&A) at the University of Miami School of Law. This change should come as a relief to investors given the seemingly poor execution over the past several quarters. Revenue in 1Q24 was just $26,530 which represented a meaningful decline from $158,000 a year ago, reflecting a decrease in customers served from 16 to just 5. Further, deteriorating cash levels suggest additional capital may be required in 2024. We see value in the company’s technology and market opportunity and suspect the change in management may find opportunities to unlock that value over the coming quarters. We remain on the sidelines and will await greater clarity on the near-term revenue opportunity before becoming more constructive on VS shares. We have adjusted our price target to $2.00 to reflect current trading levels. Maintain Neutral rating."

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