H.C. Wainwright reiterated its Buy rating and $12.00 price target on Knightscope Inc (NASDAQ:KSCP), citing the company’s acquisition prospects as a potential driver of near-term growth. The target implies substantial upside from KSCP’s recent trading level of $3.85. Third-party analyst targets for the security robotics company vary, with InvestingPro data showing estimates ranging from $8 to $25. The stock has also posted a 15.96% return over the past week.
M&A push underpins analyst conviction
H.C. Wainwright highlighted Knightscope’s recent move to retain a buy-side investment bank to explore acquisition opportunities. The research firm said the engagement could translate into a material transaction and did not rule out a deal occurring as early as this year. While no specific targets or timelines were provided, H.C. Wainwright views the proactive search for acquisitions as a meaningful strategic shift for Knightscope.
Balance-sheet position and financing considerations
As of the third quarter of 2025, Knightscope reported $20.4 million in cash on its balance sheet. InvestingPro data noted that the company holds more cash than debt, with total debt recorded at $7.37 million. Knightscope’s current ratio of 3.62 indicates that liquid assets exceed short-term obligations. Given these figures, H.C. Wainwright said the company appears positioned to complete a smaller acquisition using existing cash resources.
Nonetheless, the firm also suggested a likely deal structure would combine cash and stock to better align long-term incentives between Knightscope and any acquisition target. InvestingPro’s analysis adds that Knightscope is burning through cash at a rapid pace, a dynamic that investors should monitor as M&A activity progresses.
Types of targets and expected impact
H.C. Wainwright expects Knightscope to pursue complementary businesses that could bring adjacent technologies, access to established customer bases, or stronger standalone financial metrics. The research firm noted that while organic growth remains possible, the right acquisition could accelerate revenue growth by expanding adoption of Knightscope’s security robots.
Operational updates and near-term catalysts
Beyond potential M&A, H.C. Wainwright identified upcoming positive news flow as additional catalysts for the shares. The firm specifically cited new ASR contracts as potential catalysts during 2026, which it expects to precede more pronounced operating improvements that the firm has modeled beginning this year.
In its recent third-quarter 2025 results, Knightscope reported a notable year-over-year revenue increase. Management also recorded improvements in net loss and the company’s cash balance, although operational challenges and ongoing losses remain a concern for some investors. The company said it exceeded $1 million in new sales, client renewals, and expansions during the period.
Knightscope also reported 39 new Emergency Communication Device sales across several sectors - local government, higher education, and healthcare - spanning five states. In addition, the company secured maintenance agreement renewals for more than 60 units from higher education and local government clients. These developments are presented as part of the company’s efforts to broaden its market footprint and address operational hurdles.
Bottom line
H.C. Wainwright’s reiterated Buy rating rests on the twin pillars of potential M&A activity and improving operational momentum. The firm points to Knightscope’s available cash, modest debt load, and recent sales wins as supportive factors, while also flagging rapid cash burn and ongoing losses as issues to watch. A transaction - financed with a mix of cash and stock, in the firm’s view - could materially accelerate revenue if it brings complementary technologies or customer relationships that boost security robot adoption.