tiprankstipranks
Alarm.com assumed with Underweight from Neutral at JPMorgan
The Fly

Alarm.com assumed with Underweight from Neutral at JPMorgan

JPMorgan analyst Ella Smith downgraded Alarm.com (ALRM) to Underweight from Neutral with a price target of $50, down from $65, after assuming coverage of the name. Alarm.com has built a “highly scalable and dependable” cloud-monitoring and management platform, focused on the residential and commercial security space, the analyst tells investors in a research note. However, the firm has concerns surrounding the company’s revenue headwinds, limited margin upside, and a relatively higher mix of hardware/non-recurring revenue streams, versus similarly valued stocks. Alarm.com is experiencing a period of stark revenue deceleration and heavy competition limits its pricing power and margin upside, contends JPMorgan.

Don't Miss our Black Friday Offers:

Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App