In a report released today, Ryan Koontz from Needham maintained a Buy rating on Harmonic, with a price target of $12.00.
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Ryan Koontz’s rating is based on a combination of factors, despite the challenges faced by Harmonic. The company has experienced a shortfall in broadband revenues, missing the $100 million mark in seven out of the last ten quarters. However, Harmonic managed to exceed the lowered revenue and EPS estimates for the second quarter by 8% and $0.07, respectively, compared to consensus expectations.
Koontz acknowledges the cautious guidance provided by the management, which is 16% and $0.07 below consensus. The company’s reliance on major customers like Comcast and Charter, who are currently not progressing with their upgrade programs, adds to the uncertainty. Nevertheless, Koontz maintains a positive outlook, believing that the strategic importance of these upgrades will eventually drive execution. He sees potential for a turnaround by fiscal year 2026, which supports his Buy rating, although he has adjusted the price target to $12.
In another report released yesterday, Rosenblatt Securities also maintained a Buy rating on the stock with a $11.00 price target.