AeroClean Technologies, Inc. (NASDAQ: AERC) is a medical technology company that offers medical grade air sanitzation solutions through its products utilizing its patented technology. AERC stock is currently trending among FinTwit investors thanks to its over 600% run since the company’s product received FDA clearance. Considering the potential of the company’s air purification product, some investors are bullish AERC stock could be a valuable long-term hold.
AERC Stock News
Through its patented SteriDuct technology, AERC’s products are able to instantly kill viruses and bacteria on contact. This technology was designed to use safe, solid-state UV-C emitters at the wavelength required to kill 99.9% of air pathogens. In this way, SteriDuct is able to remain compact without using UV light tubes. Based on this, the technology is able to meet the highest requirements for hospital operating rooms as it continuously changes the air in the room.
Through testing, SteriDuct has proven its ability to kill pathogens. In one of the studies, AERC studied its technology’s impact on a surrogate pathogen for Covid-19 – MS-2 Bacteriophage. In this study, SteriDuct showed great potential in eliminating Covid-19 as the study showed a 4.21 +/- 0.27 average net log reduction after just 45 minutes. In light of this, AERC appears to be well-positioned to capture a new health-conscious group of investors impressed with the technology’s range of applications.
With this in mind, AERC has two marketed products – Pūrgo and Pūrgo Lift. Utilizing the patented SteriDuct technology, Pūrgo is a portable and easy to use pathogen eliminating system that has virtually no maintenance requirements. Despite its portable size, Pūrgo is able to meet the CDC’s standards for patient’s rooms for air quality safety since it can deliver four log kills of multiple pathogens in 45 to 60 minutes. This rapid elimination of pathogens is achieved through continuous sanitization and advanced filtration.
As for its other product, Pūrgo Lift also utilizes the patented SteriDuct technology and advanced filtration. However, this device is different from Pūrgo as it can be placed vertically or horizontally in elevators. Pūrgo Lift also operates at 175 CFM which means it can exchange the air every minute in elevators. Based on this, AERC believes Pūrgo Lift can reduce pathogens by more than 10 times when people ride an elevator together.
By utilizing SteriDuct technology in Pūrgo devices, AERC has a competitive advantage in its market. Unlike other air filtration devices, Pūrgo kills 99.9% of airborne pathogens including viruses, bacteria, superbugs, as well as allergens. Moreover, Pūrgo’s UV LED does not generate ozone and is much safer for indoor use compared to other devices with UV lamps which contain harmful mercury gas. In light of these features and patented technology, AERC could be well-positioned to grow its revenues significantly in 2022 and beyond.
Given the significance of Pūrgo’s features, it is no surprise that the device was granted 510 K clearance by the FDA – classifying it as a Class II Medical Device. This clearance was granted to AERC after an in-depth review of the device and its ability to eliminate airborne pathogens. By receiving the FDA’s clearance, AERC has the potential to capitalize on a total addressable market worth $26 billion which includes both the $11.8 billion healthcare market and the $14.6 billion non-healthcare market. With this in mind, gaining this clearance could help AERC secure contracts with healthcare facilities, businesses, and even government agencies. In that case, AERC stock could prove to be a valuable long-term investment considering the company’s unique technology.
In addition, AERC appointed Jimmy Thompson as Vice President of Strategic Sales to drive revenue growth within targeted industry verticals. As well, Thompson will be responsible for developing strategic distribution, reseller, and channel partner relationships. Through his experience in healthcare technology, Thompson will focus his efforts on improving relationships with partners in various industries – with a main focus on the healthcare industry. With this in mind, AERC appears to be poised for financial growth this year as it intensifies its efforts to secure new deals.
In terms of its financials, AERC reported $21.4 million in assets compared to $23.7 million in Q4 mainly due to cash on hand declining to $17.7 million from $19.6 million. Meanwhile, AERC reduced its liabilities from $2 million in Q4 to $1.6 million. As for its revenues, AERC reported $6.7 thousand. However, the company’s operating costs rose from $1.9 million to $2.6 million – resulting in a net loss of $2.5 million. Despite this, AERC’s efforts to secure new deals could lead to financial growth in the coming quarters.
@RealtorStarShar is bullish that AERC stock could hit $20
AERC stock price is currently $13.35 after dropping about 20% on June 14th. The stock shows supports near 13.29, 11.99, 8.75, and 3.75. AERC stock reached a high of $18.53, forming a resistance near 17.67. Since Pūrgo was granted FDA approval, AERC stock climbed over 600%. But closed on heavy selling near its support of 13.29.
On the 1 hour chart the golden cross of the MAs has only recently started but on the 5 minute its coming to a close. Despite this, AERC will likely not return to its price before the run-up considering the value this FDA approval brings to the company. But for confirmation that the upwards trend is continuing, the supports at 13.29 and 11.99 will be important to watch.
Overall, accumulation has remained steady although its showing a slight downtick with profit-taking. The MACD is bearish and the RSI is holding at 51. These indicators resetting after the run could give AERC room to run but considering the drop in trading volume, AERC could see a trend reversal. As is, AERC has an OS of 13.8 million and a low float of 4.25 million.
AERC Stock Forecast
Now that the company’s device has become FDA approved, the AERC stock forecast has become a lot brighter. Its patented technology revolutionizing air filtration and ventilation has given the company a competitive advantage as hospitals, local governments, and companies look to eliminate airborne pathogens in public spaces. Currently preparing to launch Pūrgo Lift and other wall or ceiling-mounted applications in Q4, AERC has catalysts to watch for which are worth factoring into the AERC stock forecast as they could add additional value to the company.
While the stock’s notable run up may be losing momentum, in the long-term AERC is working to increase its sales and could be set for significantly higher revenues this year. The stock had initially been given a $10 price target in February and has since been downgraded to a hold due to its run. It appears to have been given a price target of $7 which could give an indication of where AERC’s PPS will settle in the long-term.
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