Ann: Unith's Investment in Generative AI Sees 100% Growth, page-138

This report is a few months old but their valuations are in-line with my thoughts.


https://equityespresso.com.au/unith-analyst-review-a-i-tailwind-benefits/

An Analyst Summary of Unith Limited

Code: UNT | Market Cap: $18.9m | Current Price: $0.021
Price Target: $0.08 – $0.127 Sector: Communication Services
Broker: Pitt Street Research

Technology company Unith Limited has developed the Talking Heads platform, featuring digital avatars for one-on-one conversations with humans.

Broker Highlights:

• The A.I. tailwind – The broker cites a Bloomberg Intelligence report earlier this year that predicts that the generative A.I. market would grow to US$1.3tn over the next decade. The most significant driver of the growth would be generative A.I. infrastructure.

• Unith has recently secured several deals, including with the Alliance of Public Health, Ensuring and Xite Holdings. It also collaborates with an anonymous Big 5 Tech Company.

• In its Q1 update last week, Unith reported a 24.5% quarter-on-quarter increase in revenue from its B2C AI-subscription products. They also onboard 337,000 new users during the period. The broker expects this growth rate to continue over the coming quarters.

Recommendation

Pitt Street Research reiterates their value of Unith at a $65.2m base case and $103.7m bull case, equating to 8.2c per share and 12.7c per share under the company’s current number of shares on issue.