Backlog Strength Offsets Mixed Segment Performance, Supporting a Cautious Hold Rating

Northland Securities analyst Bobby Brooks maintained a Hold rating on Richardson Electronics today and set a price target of $11.00.

Bobby Brooks has given his Hold rating due to a combination of factors, including a quarter that modestly exceeded revenue expectations but largely matched profit forecasts. While PMT delivered notably stronger sales and helped drive a record backlog level, the upside was tempered by underperformance in GES and free cash flow usage that came in weaker than projected.

At the same time, the sharp improvement in backlog, especially within PMT, signals healthier demand trends that could support future growth if sustained. However, Brooks is seeking additional clarity from management on the drivers of backlog gains, the outlook for GES, energy-related initiatives, and capital return plans, leading him to maintain a neutral stance rather than move to a more decisive rating.

In another report released today, TipRanks – Anthropic also reiterated a Hold rating on the stock with a $11.50 price target.

Based on the recent corporate insider activity of 33 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 RELL in relation to earlier this year.