Arlo Technologies (ARLO – Research Report), the Industrials 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 $24.00 price target.
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Hamed Khorsand has given his Buy rating due to a combination of factors that highlight Arlo Technologies’ promising growth trajectory. The company has exceeded $300 million in annualized recurring revenue, achieving this milestone ahead of schedule, which indicates a faster growth rate than previously anticipated. This growth is largely attributed to Arlo’s strategic consolidation of its subscription tiers, which has maintained a steady influx of new paid subscribers.
Furthermore, Arlo has prioritized service revenue by offering its cameras at a loss, encouraging more customers to purchase the cameras and subsequently subscribe after the free trial period. The recent appreciation of Arlo’s stock reflects this growth in recurring revenue, and the company’s ability to generate positive free cash flow this year is expected to attract a broader investor base that recognizes its success.
In another report released on June 5, Lake Street also reiterated a Buy rating on the stock with a $17.00 price target.
Based on the recent corporate insider activity of 54 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.