Alarm (ALRM – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Jack Vander Aarde from Maxim Group reiterated a Buy rating on the stock and has a $85.00 price target.
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Jack Vander Aarde has given his Buy rating due to a combination of factors, most notably Alarm.com’s strong financial performance and promising future guidance. The company reported impressive fourth-quarter results, with SaaS and license revenue increasing by 12% year over year, and adjusted EBITDA surpassing expectations. This growth is supported by a high customer retention rate of around 95% and robust performance in its core North American residential market.
Furthermore, the company’s management has provided optimistic guidance for 2025, projecting continued revenue growth and maintaining a strong adjusted EBITDA margin. Additionally, Alarm.com’s solid balance sheet, characterized by substantial cash reserves and minimal long-term debt, positions the company well for sustainable growth. The strong recurring revenue from its SaaS offerings, coupled with high entry barriers, underpins the company’s status as a high-quality growth entity, justifying the Buy rating and the $85 price target.
Vander Aarde covers the Technology sector, focusing on stocks such as Alarm, Datavault AI, and AmpliTech Group. According to TipRanks, Vander Aarde has an average return of 5.5% and a 33.24% success rate on recommended stocks.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $73.00 price target.