DatChat Inc. (DATS:NSD) STA Research assigns a Spec Buy, $2 stock target

STA Research assigned a Speculative Buy rating on DatChat Inc. with a 12 month target forecast of $2.00 per share on the equity.

Based on the DatChat Inc stock (dats stock price) forecasts from 1 analysts, the average analyst target price for DatChat Inc (dats stock price) is $2.00 over the next 12 months. DatChat Inc’s (dats stock price) average analyst rating is Speculative Buy . Stock Target Advisor’s own stock analysis of DatChat Inc (dats stock price) is Slightly Bearish, which is based on 2 positive signals and 4 negative signals. At the last closing, DatChat Inc’s stock price was USD 1.09. DatChat Inc’s stock price has changed by -0.04% over the past week, -0.23% over the past month and +0.00% over the last year.

Mobile messaging apps are created by communication software provider DatChat, Inc. The business provides customers with DatChat Messenger & Private Social Network, a mobile software that allows for private and secure communication. Additionally, it creates a decentralised communications platform based on blockchain that enables direct connection between customers and companies. In September 2016, the business changed its name from Yssup, Inc. to DatChat, Inc. Incorporated in 2014, DatChat, Inc. has its headquarters in New Brunswick, New Jersey.

 

What we like:

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector