Netgear (NTGR – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Hamed Khorsand from BWS Financial maintained a Buy rating on the stock and has a $30.00 price target.
Hamed Khorsand has given his Buy rating due to a combination of factors that indicate Netgear’s strong potential for value realization. Among these factors is the anticipation that Netgear will generate positive free cash flow despite a projected revenue decline from the peak in December 2023. This is significant because it demonstrates the company’s ability to maintain financial health even during seasonally weaker sales periods. Furthermore, Khorsand expects the cash per share to increase to approximately $12 in the March quarter and forecasts a rise to $14 per share by the end of 2024, signaling a robust cash position that could be appealing to investors.
Additionally, Khorsand appears to recognize the company’s strategic positioning in clearing out inventory ahead of the peak selling period in the latter half of the year, which could enhance its market presence during a time when sales typically increase. Despite the ongoing price competition at the lower end of the market, Netgear’s current stock price in relation to expected cash per share suggests a nominal enterprise value, offering a potentially attractive entry point for investors. These factors, combined with the observed trends and outlook for the coming quarters, underpin Khorsand’s Buy rating for Netgear.
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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.
