Analyst Ryan Koontz of Needham maintained a Buy rating on Lantronix, with a price target of $4.50.
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Ryan Koontz has given his Buy rating due to a combination of factors influencing Lantronix’s market position and future prospects. The company’s recent financial results were in line with expectations, despite challenges such as the halted procurement from a key customer, Gridspertise. Notably, Lantronix experienced significant growth in the Americas, which offset weaknesses in other regions.
Management’s focus on expanding into rapidly growing markets like drones and edge AI is seen as a positive strategic move. This focus, coupled with a stable cost structure and steady improvements in the core business, supports the Buy rating. The price target remains at $4.50, reflecting confidence in the company’s ability to capitalize on these growth opportunities.