Owlet (OWLT – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Charles Rhyee from TD Cowen reiterated a Buy rating on the stock and has a $15.00 price target.
Charles Rhyee has given his Buy rating due to a combination of factors including Owlet’s promising financial outlook and strategic initiatives. The company is expected to achieve a revenue of $89.6 million in 2025, marking a 15% year-over-year increase, which aligns with management’s guidance. Additionally, Owlet is projected to reach an adjusted EBITDA of $1.6 million, meeting its goal of breaking even on an adjusted EBITDA basis by 2025.
Rhyee is optimistic about Owlet’s transition from a device manufacturer to a service-oriented business with its subscription service, Owlet360. This shift is anticipated to enhance customer lifetime value and capitalize on Owlet’s unique data assets. The potential for higher-than-expected revenue from products like BabySat and Owlet360 further supports the positive outlook, justifying the Buy rating and maintaining a price target of $15, based on a revised discounted cash flow analysis.
According to TipRanks, Rhyee is a 2-star analyst with an average return of 0.3% and a 45.65% success rate. Rhyee covers the Healthcare sector, focusing on stocks such as Walgreens Boots Alliance, CVS Health, and Charles River Labs.
In another report released on March 5, Lake Street also reiterated a Buy rating on the stock with a $8.50 price target.