Owlet: Short-Term Headwinds, Long-Term Growth Levers Support Buy Rating

Analyst Jonna Kim from TD Cowen reiterated a Buy rating on Owlet and decreased the price target to $13.00 from $19.00.

Jonna Kim has given his Buy rating due to a combination of factors tied to Owlet’s underlying fundamentals and growth trajectory. She views the softer 1Q26 outlook as a temporary issue driven by retailer inventory tightening and seasonal factors, rather than a sign of structural weakness, and notes that February sell‑through data already shows a meaningful rebound.

Kim also emphasizes multiple growth levers, including rising consumer uptake of the enhanced Dream Sight camera and improved Dream Sock, expanding international presence, increasing penetration of the Owlet360 subscription, and the upcoming telehealth rollout. In her view, Owlet is gaining share versus key competitors whose sales are declining, and the company’s strong registry additions and higher-value Dream Duo mix support a favorable long‑term revenue and earnings profile, making the current share weakness an attractive entry point.

In another report released today, Northland Securities also assigned a Buy rating to the stock with a $15.00 price target.

Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OWLT in relation to earlier this year.