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Rezolve AI (RZLV) is a little-known company that offers generative artificial intelligence (AI) solutions for information technology (IT) and human resources (HR) functions. According to its website, it aims to “augment” human workers and increase IT efficiency. Trading below $3.50, it is solidly in penny stock territory.
Its shares have spiked more than 60% in the last five trading days as investors and analysts react to deals the company has inked with Google (GOOGL) and Microsoft (MSFT). Roth MKM initiated coverage of the stock with a “Buy” rating and a target of $4.
Roth MKM believes its recent deals with Google and Microsoft will boost the company and highlight its role as a major player in conversational commerce – the practice of businesses using chatbots to engage with customers. Analysts also praise Rezolve’s 300-billion parameter large language model (LLM) as a game-changer, noting that it outperforms OpenAI’s GPT-4 model for retail use.
The deals will see Microsoft sending 10 leads per month to Rezolve while committing $130 million in sales, while Google could account for up to 50% of Rezolve’s commerce revenue.
Lastly, despite its early stage risks, the analyst notes that the company has shown positive growth signs while securing a $1 million annual recurring revenue (ARR) deal alongside running more than 120 active pilot programs. Roth MKM believes the company can reach breakeven by the third quarter of 2025.
About RZLV Stock
Established in 2007, Rezolve AI is located in the United Kingdom. It has a relatively new life in the public market, coming public via a reverse merger in August 2024.
Shares have experienced volatility since. Although they are up 60% over the last five days, they are down more than 50% over the past three months.
How High Can RZLV Go?
As the stock gains momentum, it receives a unanimous “Strong Buy” rating from three analysts who have initiated coverage this month.
The stock's mean price target of $4.50 reflects upside of 38% from current prices, while the street-high target of $5 signifies potential upside of 54%.
