Analyst Austin Bohlig of Needham maintained a Buy rating on Lantronix, with a price target of $8.50.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Austin Bohlig has given his Buy rating due to a combination of factors that reflect both solid recent execution and strengthening future prospects. Lantronix delivered fiscal second-quarter results that matched market expectations, and when adjusting for a stalled legacy customer, underlying revenue showed healthy double-digit year-over-year growth. The Americas region was particularly strong, driven by robust demand for new system-on-module products, especially in the drone segment, which is gaining traction more quickly than management had anticipated. Recent approval of the defense budget is expected to translate into substantial multi-year drone-related orders, reinforcing the company’s growth runway in this vertical.
Management’s decision to lift its fiscal 2026 drone revenue target by roughly 30% to about $10 million, along with expectations for high double-digit percentage growth in drones in fiscal 2027, underpins the upbeat outlook. Bohlig made modest adjustments to near-term estimates, but increased longer-term projections as visibility into the drone opportunity improved. This combination of in-line execution, accelerating momentum in a high-growth end market, and increased confidence in forward estimates supports a higher price target of $8.50 and underlies his Buy recommendation on Lantronix shares.
Bohlig covers the Technology sector, focusing on stocks such as Unusual Machines Inc., Ondas Holdings, and Lantronix. According to TipRanks, Bohlig has an average return of 50.6% and a 66.67% success rate on recommended stocks.
In another report released today, Craig-Hallum also reiterated a Buy rating on the stock with a $10.00 price target.