- Needham Analyst Ryan Koontz raised the price target Harmonic Inc HLIT to $17 from $15 and held a purchase Valuation.
- The company’s Investor Day presentation saw higher expectations for its broadband segment to achieve a revenue CAGR of over 34% over the next three years.
- HLIT also raised its 2025 revenue target by 64% from its previous 2024 target.
- FTTH sales to cable operators are the most significant growth driver, projected to exceed $160 million in 2025 from near zero today.
- Broadband EBITDA margin targets were similarly impressed, rising from 20% to 28% in 2025.
- The company’s less strategic video segment is likely to improve its EBITDA margin to 16%.
- He found that HLIT is well-positioned to maintain its dominant position in next-generation cable infrastructure as operators fend off the increasing threats from new FTTH and fixed wireless deployments.
- Price promotion: HLIT shares traded 6.34% higher to $11.91 on the last check Friday.
- Photo by Michal Jarmoluk via Pixabay
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