According to the Intelligent Finance APP, Roth MKM recently released a research report, reaffirming its "buy" rating on ISPR.US with a target price raised from $11 to $12.5, which has a potential upside of 71.5% compared to the closing price of $7.29 on July 24 (Beijing time).

Roth MKM raised its target price for ISPR.US mainly based on the expected revenue growth driven by a new global e-cigarette partnership. Roth MKM analysts have strong confidence in the potential of ISPR and predict that the company will continue to achieve excellent growth in the second half of 2024. The adjusted revenue estimate and target price reflect the positive impact of the new partnership's expected financial performance.

It is expected that ISPR will benefit from multiple strategic initiatives, including partnerships with new original design manufacturers (ODMs), expansion of distribution networks, age control technology licenses, increased market share in open pod systems, and possible positive progress in the re-legalization of marijuana in the United States.

Analysts pointed out that as the company expands production and new product lines, ISPR's gross margin is also expected to improve. Valued at 1.0 times the expected new revenue in 2025, ISPR's stock is considered attractive, and the "buy" rating is reiterated.

In addition, in June of this year, ISPR announced that its wholly-owned subsidiary Aspire Science and Technology Limited has established an original design and manufacturing (ODM) relationship with a leading global aerosol brand ("customer").

The company has started receiving monthly orders of 3 million units, which are expected to remain stable in the next 12 months, bringing Wumart Technology's revenue of more than $100 million annually. The first batch of orders will be shipped in July 2024. As the customer continues to place orders with the company, Wumart Technology expects the relationship to continue and expand in the coming years.

Furthermore, in May of this year, ISPR announced that it had signed an exclusive distribution agreement with Dank Pack, a leading South African supplier of aerosol product packaging, accessories, supply and production equipment.

According to the agreement, ISPR will supply Dank Pack with a range of aerosol products and accessories, including Ispire ONE products, Ispire Signature, Ispire Signature OVL, Ispire Signature NANO, Ispire Signature LVL, Ispire Ispire Signature Cartridges and Ispire Batteries, thus entering the rapidly growing South African market.

It is worth noting that ISPR is also expected to benefit from the possible positive progress of the re-legalization of marijuana in the United States. In May of this year, the US Department of Justice officially published in the Federal Register, announcing the launch of a program to adjust marijuana control levels. According to reports, the US Department of Justice issued a notice stating that it was launching a public consultation process aimed at moving marijuana from the most serious Schedule I of the Controlled Substances Act to Schedule III.

According to the definition of the Controlled Substances Act, marijuana is currently in Schedule I, which refers to substances that have no accepted medical use, have a high potential for abuse, and lack safety guarantees for use; Schedule III refers to substances that have accepted medical purposes and may cause moderate/low physical dependence or high psychological dependence during use. Sedatives and anti-anxiety drugs are classified in lower categories.

Earlier this year, regulatory agencies and scientists from research institutions in the United States submitted a report claiming that marijuana was "not easily abused and had potential medical value," and suggested that the federal government relax its control over marijuana. The US Drug Enforcement Administration (DEA) is considering the recommendations and is expected to make a decision within a few months.

ISPR has also recently made positive layouts related to this. In early May of this year, it announced that it had signed an agreement with Acreage Holdings, Inc. ("Acreage"), a subsidiary of Acreage, to supply the company's Ispire ONE aerosol products and filling machines.

Affected by the above multiple favorable information, ISPR's stock price has risen by 36.56% and 13.31% in May and June respectively this year, and the company's stock price has accumulated a 17% increase in the past five trading days.