Owlet: Regulatory Moat, Expanding Recurring Revenue, and Strengthening Fundamentals Underpin Buy Rating

Analyst Owen Rickert of Northland Securities maintained a Buy rating on Owlet, retaining the price target of $15.50.

Owen Rickert has given his Buy rating due to a combination of factors that highlight Owlet’s strengthening fundamentals and growth outlook. He notes that management is seeing healthy demand trends for the Dream Sock and Dream Duo products, supported by strong holiday sales, which confirms solid consumer traction. The recent introduction of the Dream Sight camera is expected to be a key growth driver, enabling new subscription-based features that should extend customer engagement well beyond the typical life of the sock product and enhance lifetime value. In addition, the Owlet 360 service has already built a sizable subscriber base and is in the early stages of international rollout, positioning the company to grow higher-margin recurring revenue over the next several years.
From a strategic standpoint, Rickert highlights Owlet’s regulatory and competitive positioning as a core element of his positive view. With both FDA clearance and CE Mark approval, Owlet benefits from a regulatory moat that competitors have not matched, backed by a significant base of clinical data. The company already commands a large share of spending in the baby monitor category and is quickly building an international presence, particularly in Europe, where partners are reporting robust momentum. Combined with recent progress in cleaning up the capital structure ahead of a planned investment phase, these factors support Rickert’s conviction that Owlet is well positioned for profitable expansion through 2026 and beyond, justifying his Buy recommendation.

In another report released on December 13, William Blair also maintained a Buy rating on the stock with a $0.00 price target.