Peraso, Inc. (PRSO – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst David Williams from Benchmark Co. remains neutral on the stock and has a $1.00 price target.
David Williams’ buy rating for Peraso, Inc. (PRSO) is primarily attributed to a combination of factors. He noted that the company’s millimeter wave (mmWave) business is witnessing positive design momentum, although customer inventory adjustments have temporarily slowed growth. In addition, memory end-of-life orders have increased, creating a buffer as the mmWave inventory is utilized. This, in turn, is expected to support operations for the next few quarters, despite potential revenue volatility due to manufacturing lead times. The total opportunity pipeline has also grown, indicating strong customer interest, particularly for applications in dense urban environments.
Williams further highlights that despite liquidity and inventory challenges, the demand backdrop is improving and PRSO is well positioned to leverage the deployment inflection. He also notes that the company’s exploration of strategic alternatives, coupled with workforce reductions, have alleviated immediate concerns, providing additional time to complete the process. Savings from workforce reductions, which equate to around 28% of employees, are expected to generate an estimated $2.2M in annualized savings, which will help extend the company’s runway without significantly impacting the technology roadmap. He also emphasizes that the mmWave and 5G businesses are increasingly attractive assets. These observations, coupled with an anticipated better investment environment in early 2024, provide the basis for Williams’ buy rating for PRSO.
According to TipRanks, Williams is a 3-star analyst with an average return of 1.2% and a 43.93% success rate. Williams covers the Technology sector, focusing on stocks such as MACOM Technology Solutions Holdings, IonQ, and Maxlinear.
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Peraso, Inc. (PRSO) Company Description:
MoSys, Inc. focuses on the development and sale of integrated circuits, or ICs, for cloud networking, communications, security appliance, video, monitor and test, data center and computing markets. Its products include blazar accelerator engine ICs, 100G linespeed products, and development kits. The company was founded in September 1991 and is headquartered in San Jose, CA.
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