Needham analyst James Ricchiuti reiterated a Buy rating on Napco Security Technologies (NSSC – Research Report) today and set a price target of $52.00.
James Ricchiuti has given his Buy rating due to a combination of factors including Napco Security Technologies’ strong performance in the third fiscal quarter and the company’s promising growth prospects. In the report, Ricchiuti highlights that Napco’s revenues and earnings per share (EPS) surpassed expectations, with a 13% year-over-year revenue increase against the Street’s anticipation of 11%. Additionally, EPS exceeded consensus estimates by 13%, bolstered by higher-than-expected gross margins from both equipment and recurring revenue segments.
Furthermore, the report underscores the impressive growth in Napco’s Service (Recurring Revenue) business, which saw a substantial 29% year-over-year increase, outpacing the consensus projection of 25%. The recurring revenue’s annual run rate also showed a significant upswing. Ricchiuti’s optimism is further supported by Napco’s expanding channel reach and introduction of new products, prompting an upward revision of financial estimates for the fourth fiscal quarter and fiscal year 2025. These factors collectively inform Ricchiuti’s reaffirmation of a Buy rating for Napco Security Technologies.
In another report released yesterday, Imperial Capital also upgraded the stock to a Buy with a $51.00 price target.
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Napco Security Technologies (NSSC) Company Description:
Napco Security Technologies, Inc. engages in the development, manufacture, and distribution of security products. It operates though Domestic and Foreign geographical segments. Its products include access control systems,door security products, intrusion and fire alarm systems, video surveillance products, and cellular communications services. The company was founded in 1969 and is headquartered in Amityville, NY.
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