George Gianarikas, an analyst from Canaccord Genuity, maintained the Buy rating on Lantronix (LTRX – Research Report). The associated price target was lowered to $4.50.
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George Gianarikas has given his Buy rating due to a combination of factors influencing Lantronix’s current and future potential. Despite a slight decrease in revenue in the December quarter, which was largely attributed to reduced volumes from a key automotive client and delays in a major European smart grid project, the company is expected to resume shipments soon, balancing this shortfall with anticipated organic growth in other areas.
Moreover, Lantronix’s strategic leadership change, with the appointment of Brent Stringham as CFO, underscores the company’s commitment to leveraging management expertise for future growth. The company is poised for healthy expansion in the IoT sector, particularly in smart city and intelligent-edge solutions. Additionally, Lantronix’s growth strategy includes both organic development and acquisitions, with a recent acquisition enhancing its market reach. Despite lowering the price target to $4.50, the analyst maintains a positive outlook, anticipating potential benefits from future acquisitions and continued customer engagement.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $8.00 price target.
LTRX’s price has also changed moderately for the past six months – from $3.710 to $4.200, which is a 13.21% increase.