Richtech Robotics (RR) Gets Buy Rating, $3.50 PT Despite Q3 Loss

Richtech Robotics Inc. (NASDAQ:RR) is one of the best small-cap AI stocks to invest in according to hedge funds. On September 16, H.C. Wainwright analyst Scott Buck reiterated a Buy rating on Richtech Robotics while setting a price target of $3.50. Earlier in August, the company reported a loss of $4.1 million, or $0.04 per share, for Q3 2025.

Over the four quarters leading up to this report, Richtech has not been able to surpass consensus EPS estimates. This quarterly loss of $0.04 per share compares to a loss of $0.02 per share announced a year ago. The company’s revenue for the period was $1.2 million, which was lower than estimates. However, the company secured several business deals in Q3. These deals are expected to increase the company’s Q4 revenue and drive future recurring revenue.

The most recent one is a sales agreement, valued at over $4 million, with Beijing Tongchuang Technology Development Co., Ltd., which was announced on September 11. This deal is for the purchase and provision of services related to the company’s three product lines and is also expected to positively impact Q4 revenues.

Richtech Robotics Inc. (NASDAQ:RR) develops, manufactures, deploys, and sells robotic solutions for automation in the service industry in the US. The company offers indoor transport & delivery, sanitation, and food & beverage automation solutions.

While we acknowledge the potential of RR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.