Napco Security downgraded to Hold at Lake Street on valuation

As previously reported, Lake Street downgraded Napco Security (NSSC) to Hold from Buy with a price target of $26, down from $28. The firm thinks Napco’s revenue results were better than feared given how challenging the current backdrop is and was “impressed with the solid GM performance,” the analyst tells investors. However, with fiscal Q4 likely representing the fourth consecutive quarter of year-over-year declines in equipment revenue and a year-over-year deceleration in service revenue, the firm thinks shares will likely remain range-bound at current levels until there is better visibility into stabilization, the analyst tells investors.