Analyst Owen Rickert of Northland Securities maintained a Buy rating on Owlet, boosting the price target to $15.50.
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Owen Rickert’s rating is based on Owlet’s impressive performance in the third quarter of 2025, where the company exceeded revenue and adjusted EBITDA expectations. The recent stock offering has bolstered Owlet’s liquidity, providing ample resources for research and development in the coming year, which is a significant positive factor. Additionally, Owlet has been executing well on its key initiatives, positioning itself for a strong 2026 by integrating new growth drivers into its core business to support long-term expansion.
Owlet’s record quarter can be attributed to increased sales of its Dream Sock and Dream Duo products globally, alongside the successful adoption of Owlet 360 in the US. The company plans to expand its international subscription offerings, which is expected to drive further growth. Despite a slight decrease in gross margin due to tariff impacts, this was mitigated by a favorable product mix and reduced costs. With the resolution of an FDA warning, ongoing international regulatory approvals, and a strategic partnership, Owlet is well-positioned for continued growth and progress.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $15.00 price target.