Inseego’s Performance: Balancing Robust Mobile Solutions with FWA Challenges

Analyst Lance Vitanza of TD Cowen maintained a Hold rating on Inseego (INSG – Research Report), with a price target of $13.00.

Lance Vitanza has given his Hold rating due to a combination of factors affecting Inseego’s performance. The company surpassed its fourth-quarter expectations largely because of robust mobile solutions and consistent, high-margin services. However, these positive results were partially offset by challenges in the Fixed Wireless Access (FWA) segment, primarily due to customer inventory management issues.
Inseego’s non-GAAP gross margin improved, which contributed to EBITDA exceeding guidance. The strategic emphasis by CEO Juho Sarvikas on expanding Software as a Service (SaaS) and FWA offerings is seen as enhancing the company’s long-term value proposition. Despite these strengths, Inseego’s resilience will likely face a significant test in the future.