Spectral AI’s DeepView System: Promising Clinical Data and Regulatory Prospects Support Buy Rating

H.C. Wainwright analyst Swayampakula Ramakanth has reiterated their bullish stance on MDAI stock, giving a Buy rating yesterday.

Swayampakula Ramakanth’s rating is based on the promising clinical data from Spectral AI’s burn validation study, which highlights the potential of their DeepView system. The system demonstrated a significantly higher accuracy in predicting burn wound healing outcomes compared to traditional physician evaluations. Specifically, DeepView showed superior performance in sensitivity and Dice scores, indicating its effectiveness in correctly identifying non-healing burn tissue.
Furthermore, the positive results from the study are expected to support the company’s upcoming regulatory submission to the FDA, which could lead to a De Novo classification for the DeepView System. The valuation of Spectral AI’s stock also considers a net present value analysis of projected future revenues from the DeepView AI, factoring in an 11% discount rate. Despite potential risks such as clinical, regulatory, and competitive challenges, the strong clinical data and anticipated regulatory progress underpin the Buy rating with a price target of $3.50.

In another report released yesterday, Northland Securities also reiterated a Buy rating on the stock with a $6.00 price target.