In a report released today, Darren Aftahi from Roth MKM maintained a Buy rating on Alarm (ALRM – Research Report), with a price target of $70.00.
Darren Aftahi has given his Buy rating for Alarm.com Holdings, Inc. (ALRM) due to a mix of positive developments and financial forecasts. The resolution of litigation between ALRM and Vivint, which had previously ceased paying licensing fees in the fourth quarter of 2022, has led to a new licensing agreement. This agreement is expected to contribute approximately $24 million in additional SaaS licensing revenue for ALRM, and Aftahi believes this will have a significant positive effect on the company’s profitability for the fiscal year 2024.
The analyst has also taken into account the likely reduction in litigation expenses for ALRM, which can further enhance the company’s financials. Additionally, the potential for an 80%+ flow-through rate to adjusted EBITDA is seen as a strong indicator of increased profitability. Based on these factors and the high anticipated flow-through rates, Aftahi has adjusted the price target for ALRM from $67 to $70. This new price target also reflects the use of a peer multiple for the enterprise value to projected 2024 sales ratio, reinforcing Aftahi’s positive outlook on the stock’s future performance.
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.
Alarm (ALRM) Company Description:
Alarm.com Holdings, Inc. engages in the provision of wireless and web-enabled security system technology. The company offers security, video monitoring, and energy management solutions. It operates through the Alarm.com and Other segments. The Alarm.com segment represents cloud-based platform for the connected home and related connected home solutions. The Other segment focuses on the research and development of home and commercial automation, as well as energy management products and services. The company was founded by Jean-Paul Martin and Alison J. Slavin in 2000 and is headquartered in Tysons, VA.
Read More on ALRM:
