In a report released yesterday, Jack Vander Aarde from Maxim Group reiterated a Buy rating on Alarm, with a price target of $85.00.
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Jack Vander Aarde’s rating is based on Alarm.com’s strong financial performance and strategic positioning. The company reported impressive third-quarter results, with significant growth in its SaaS and License revenue, which increased by 10.1% year-over-year. This growth is supported by a high retention rate of approximately 94% and robust performance in its core North American residential market, as well as its international, commercial, and EnergyHub segments.
Additionally, Alarm.com has demonstrated solid execution in its EnergyHub business, which has shown strong growth through new program launches and increased demand for its energy management solutions. The company’s management has raised its guidance for 2025, reflecting confidence in continued growth and profitability. With a strong balance sheet and high barriers to entry, Alarm.com is positioned as a high-quality growth company, justifying the Buy rating and the price target set by Jack Vander Aarde.