Airship AI (NASDAQ: AISP) investors have been on a wild ride since the initial public offering (IPO), and the volatility is not over. The latest news includes a new contract award that sent the stock upward 16% in a single day. The action is bullish at face value but more so because it confirms support at a higher level than earlier this year. In this scenario, the market could rise significantly in the coming weeks, months, and quarters with targets at +50%, +100%, and +200% from current levels.
What is Airship AI? Airship AI is a tech startup focused on video surveillance and data monitoring. Its Acropolis platform can connect devices and sensors across the entire digital ecosystem, providing AI-powered assistance at the edge and back end. The system can be run via on-premise hardware or in the cloud, making it a leading choice for enterprises, governments, businesses, and industry.
Airship AI Grows By Leaps and Bounds
Airship AI has announced a steady stream of new business since the start of the year. The latest update is a six-figure contract for a five-year term for system expansion at a Fortune 100 company. The news is a driver for business because of the affirmation and the scope of sales. A single $1 million increase in revenue is worth 4% growth relative to the 2024 outlook, and it is likely to be a multi-million dollar contract. The takeaway is that this company is building leverage that has not yet been factored into the share price, and this is just the first of many contracts with Fortune 100 businesses.
The government business is also growing. The company recently announced a follow-on contract for a base-year plus-four option with an existing client, the Department of Justice. The award affirms that AISP is on the right track with its FedRAMP certification, a significant milestone when reached. FedRamp certification will open the door to the widespread use of Airship AI technology across government agencies. The DOJ agency will use the platform and analytical tools to aid emerging public safety issues and investigations.
Growing Sell-side Interest in Airship AI
The sell-side support for Airship AI is still quite small, but there have been some interesting developments over the last two months. Regarding the analysts, only one analyst has a rating on the stock, but it came out in May, is set at Strong Buy, and sees this stock advancing nearly 200% to the $12 level.
The buy rating was set by Roth MKM, which has a vested interest, so take it with a grain of salt. Roth was the exclusive mergers and acquisitions (M&A) advisor for the SPAC merger/IPO in 2023; it sees AISP revenue doubling this year and the margin widening. The long-term view is for growth to slow in 2025 but does not include the latest business win. The critical detail is that profits are expected in 2025, and the outlook is cautious.
Institutional interest is equally light, but it is growing for this tech stock. The institutions own only 5% of the stock but were net buyers in Q1 and Q2. That trend should continue now that momentum is growing, and institutional activity may accelerate due to the low share price. Trading at $4.50, the stock is 40% below the IPO price and more than 200% below this year’s high.
Airship AI is in Rebound Mode
Airship AI stock price fell following the IPO only to rebound sharply on positive news. That news was the first of several updates in which government agencies adopted the platform and deepened their use of services. Since then, the market corrected but is showing support at a higher level than before and is set up to rebound. The latest news has the market up more than 15% to show bullish conviction. The move is backed up by a volume spike and technical indicators that point to upward movement this year. The stochastic and MACD combine with the price to form a strong bullish signal that could take the market up to $6.60 before mid-summer and retest the recent highs by late summer or early fall.
