In a report released today, Hamed Khorsand from BWS Financial maintained a Buy rating on Arlo Technologies (ARLO – Research Report), with a price target of $24.00.
Hamed Khorsand has given his Buy rating due to a combination of factors, primarily focusing on Arlo Technologies’ strong market position and financial performance. The company has established itself as a leader in the home monitoring IP camera market, leveraging this position to expand its product offerings and enhance its service revenue. Arlo ended 2024 with a significant subscriber base of approximately 4.6 million, setting a clear trajectory towards surpassing 5 million subscribers in 2025, which is expected to drive service revenue growth by over 20%.
Additionally, Arlo’s strategic move to consolidate subscription tiers and implement a price increase at the beginning of 2025 is anticipated to further boost revenue. Despite the aggressive promotional campaigns during the holiday season, Arlo’s reported revenue exceeded expectations, indicating strong market demand and effective sales strategies. The company’s stock has not yet fully reflected these positive developments, suggesting potential for upward movement, which supports the Buy rating.
According to TipRanks, Khorsand is a 5-star analyst with an average return of 9.0% and a 51.82% success rate. Khorsand covers the Technology sector, focusing on stocks such as Adeia, Immersion, and Innodata.
In another report released today, Craig-Hallum also reiterated a Buy rating on the stock with a $17.00 price target.
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