Analyst Kingsley Crane of Canaccord Genuity reiterated a Buy rating on Alarum Technologies, retaining the price target of $27.00.
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Kingsley Crane has given his Buy rating due to a combination of factors that highlight Alarum Technologies’ promising growth trajectory and strategic positioning in the AI data collection space. The company reported impressive Q3 results, with an 81% year-over-year increase in revenue, driven by its strategic pivot towards AI-focused products. This shift has resulted in record top-line growth, validating its new product portfolio, despite a slight decline in profitability due to deliberate reinvestment in network capacity and talent acquisition.
Moreover, Alarum’s gross margins exceeded expectations, even amidst increased costs associated with servicing large AI projects. Despite a temporary dip in share prices, Crane sees this as an opportunity, given the company’s critical role in AI data pipelines and the strong demand for its services. The shares are currently undervalued, trading at a low multiple of future sales, which presents a compelling buying opportunity for investors willing to navigate some volatility. Crane reiterates a Buy rating with a price target of $27, reflecting confidence in Alarum’s ability to sustain its growth momentum.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $13.00 price target.
ALAR’s price has also changed moderately for the past six months – from $7.820 to $9.170, which is a 17.26% increase.