Analyst Hamed Khorsand from BWS Financial maintained a Buy rating on Arlo Technologies (ARLO – Research Report) and keeping the price target at $24.00.
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Hamed Khorsand has given his Buy rating due to a combination of factors influencing Arlo Technologies’ market position and performance. Despite the entrance of a new competitor, Roku, into the security camera market, Khorsand believes that Arlo’s established leadership and strategic pricing will mitigate any significant impact from Roku’s offerings. Arlo’s strategy of selling hardware below cost is expected to sustain its market share even as Roku attempts to gain traction.
Additionally, Khorsand notes that Arlo Technologies experienced positive momentum in the first quarter, with consumer activity exceeding typical post-holiday seasonal trends. This suggests a robust demand for Arlo’s products, supporting the company’s growth prospects. The absence of debt and a solid cash position further bolster Arlo’s financial stability, making it an attractive investment opportunity with a target price of $24 over the next 12 months.
Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ARLO in relation to earlier this year.