In a report released today, James Ricchiuti from Needham reiterated a Buy rating on Faro Technologies (FARO – Research Report), with a price target of $37.00.
James Ricchiuti has given his Buy rating due to a combination of factors that highlight Faro Technologies’ promising outlook. The company ended 2025 on a positive note with a stronger-than-expected fourth quarter, where revenue declines were less severe than anticipated and margins exceeded expectations, leading to a significant earnings per share (EPS) beat.
Despite the challenging macroeconomic conditions, Faro Technologies is actively pursuing growth through strategic initiatives. These include securing new OEM and distribution agreements, such as partnerships with Topcon and another metrology company, along with introducing new products and implementing selective price increases. Management’s guidance for the first quarter of 2025 aligns with market expectations, projecting a moderate revenue decline but with a stronger EPS outlook. Consequently, Ricchiuti has raised the EPS estimate for 2025, reflecting confidence in the company’s ability to achieve growth and margin expansion, reinforcing the Buy recommendation.
Based on the recent corporate insider activity of 24 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 FARO in relation to earlier this year.