Analyst Hamed Khorsand of BWS Financial maintained a Buy rating on Netgear (NTGR – Research Report), with a price target of $30.00.
Hamed Khorsand’s Buy rating for Netgear’s stock is largely influenced by several key factors. This includes a notable increase in demand for the company’s premium wireless mesh systems and routers during the third quarter, which led to a non-GAAP profit. Another influential factor is the anticipated return to normalcy which is expected to facilitate Netgear’s conversion of its on-hand inventory into cash over the next two quarters.
Furthermore, Khorsand has observed a positive trend in Netgear’s cash balance, which rose in the third quarter and is expected to continue rising in the forthcoming quarters. He also noted that Netgear managed to exceed revenue expectations, reporting a revenue of $197.8 million as opposed to the forecasted $183.9 million. This increase in revenue subsequently led to a rise in gross margin to 35 percent and non-GAAP operating income. While a softer environment for SMB products necessitates a reassessment of the model, Khorsand believes that Netgear’s cash balance could continue to increase.
According to TipRanks, Khorsand is a 4-star analyst with an average return of 5.5% and a 45.40% success rate. Khorsand covers the Technology sector, focusing on stocks such as Netgear, Adeia, and Ubiquiti Networks.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Netgear (NTGR) Company Description:
NETGEAR, Inc. engages in the provision of Internet connected products to consumers, businesses, and service providers. It operates through the following segments: Connected Home, and Small & Medium Business. The Connected Home segment focuses on consumers and consists of high-performance, dependable and easy-to-use WiFi Internet networking solutions such as WiFi mesh systems, routers, 4G/5G mobile products, smart devices such as Meural digital canvasses, and services offering consumers a range of parental controls and cyber security for their home networks. The Small & Medium Business segment focuses on small and medium-sized businesses and consists of business networking, wireless LAN, storage, and security solutions that bring enterprise-class functionality to small and medium-sized businesses at an affordable price. The company was founded by Patrick C. S. Lo and Mark G. Merrill on January 8, 1996 and is headquartered in San Jose, CA.
Read More on NTGR:
