Hamed Khorsand, an analyst from BWS Financial, maintained the Buy rating on Arlo Technologies. The associated price target is $26.00.
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Hamed Khorsand has given his Buy rating due to a combination of factors that highlight Arlo Technologies’ strategic positioning and potential for growth. The company has successfully managed to clear out its inventory of older product lines, paving the way for the release of over 100 new SKUs. This transition indicates a proactive approach to product innovation and market adaptation, which is crucial for maintaining leadership in the smart home security market.
Moreover, despite a temporary dip in gross margin to 41.4%, Arlo Technologies reported revenue slightly above expectations, demonstrating resilience during a period of transition. The increase in the number of paid accounts is also a positive indicator, suggesting a foundation for enhanced free cash flow in the future. These factors collectively support the Buy rating, reflecting confidence in the company’s ability to capitalize on its strategic initiatives and drive financial performance.
Khorsand covers the Technology sector, focusing on stocks such as Innodata, Adeia, and Ubiquiti Networks. According to TipRanks, Khorsand has an average return of 14.5% and a 57.17% success rate on recommended stocks.
In another report released on November 7, Lake Street also reiterated a Buy rating on the stock with a $24.00 price target.