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On Friday, Ascendiant Capital’s analyst Edward Woo increased the price target for Intrusion Inc. (NASDAQ:INTZ) to $11.00, up from the previous $10.00, while reiterating a Buy rating on the stock. Currently trading at $1.35, the stock has shown significant volatility, with a 52-week range of $0.35 to $7.34. The adjustment follows Intrusion’s reported strong first-quarter revenue, which saw a 57% year-over-year increase, contributing to an impressive 18% revenue growth over the last twelve months.
Woo’s assessment suggests that despite recent revenue concerns, the potential for growth and the company’s valuation remain compelling reasons for the positive outlook. According to InvestingPro data, the company maintains strong gross profit margins of 76% and a healthy current ratio of 3.97, though its overall financial health score indicates some challenges. The new 12-month price target is based on a Net Present Value (NPV) analysis, which indicates a significant potential rise from the current share price.
Intrusion’s recent performance has presented a high-risk versus high-reward scenario, according to Woo. InvestingPro analysis reveals several key insights, including the company’s strong cash position relative to debt and its tendency to move counter to market trends. He believes that the growth prospects and valuation of the company present an attractive opportunity for investors. The risks associated with the company are considered to be outweighed by the potential for substantial growth and the upside opportunities that lie ahead. For deeper insights, investors can access 12 additional ProTips and comprehensive analysis through InvestingPro’s detailed research reports.
The analyst’s commentary highlights the balance between Intrusion’s inherent risks and its robust growth prospects. This balance, as per the NPV analysis, justifies the increased price target and supports the continued Buy rating.
Investors and market watchers will be keeping a close eye on Intrusion’s stock performance following this updated price target and the maintained optimistic stance from Ascendiant Capital.
In other recent news, Intrusion Inc. reported a substantial 57% increase in revenue year-over-year for Q1 2025, reaching $1.8 million. Despite this growth, the company experienced a net loss of $2.1 million, or $0.11 per share. Consulting services were a major contributor to revenue, growing by $700,000 compared to the previous year. Intrusion Inc. is preparing for a launch on the AWS Marketplace in the second half of 2025, which is expected to positively impact revenue. The company has also announced a new partnership with PortNexus to integrate its technology into PortNexus’s solutions. Analysts from H.C. Wainwright and Ascendiant Capital have shown interest in the company’s pricing strategies and government contracts, respectively. Intrusion Inc. maintains a strong cash position, with $10.7 million in cash and cash equivalents, up significantly from the previous year. The company expects revenue acceleration in the latter half of 2025, driven by both government and commercial market penetration.
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