Harmonic’s Future Growth Potential Outweighs Current Forecast Challenges: Buy Rating Reaffirmed by Ryan Koontz

Analyst Ryan Koontz of Needham maintained a Buy rating on Harmonic (HLIT – Research Report), with a price target of $14.00.

Ryan Koontz has given his Buy rating due to a combination of factors. Despite Harmonic’s introduction of a weaker forecast for fiscal year 2025, primarily driven by reduced demand from key clients Comcast and Charter, the company showed strong performance in the fourth quarter of 2024. This was evidenced by a 33% increase in revenue and a $0.32 rise in earnings per share year-over-year.
Koontz sees potential for Harmonic’s competitive position to strengthen, particularly with Comcast’s transition to the DOCSIS 4 Unified network, which could mitigate competitive pressures. Although total orders fell by 24% year-over-year, he anticipates significant growth opportunities in fiscal year 2026 as industry investments rebound. As a result, Koontz has adjusted the price target to $14, reflecting confidence in Harmonic’s future growth prospects.

In another report released yesterday, Rosenblatt Securities also maintained a Buy rating on the stock with a $12.00 price target.