B.Riley initiates coverage on Sequans Communications stock with Buy rating

Investing.com - B.Riley has initiated coverage on Sequans Communications (NYSE:SQNS) with a Buy rating and a price target of $13.00, according to a research note released Thursday. The stock, currently trading at $7.97, has experienced significant pressure, down over 77% year-to-date, with a market capitalization of $114 million. InvestingPro data shows the company trading at a P/E ratio of 0.53, suggesting potential undervaluation.

The firm’s analysis highlights that Sequans combines Bitcoin treasury holdings with a legacy semiconductor business, currently trading at 0.7 times modified net asset value (mNAV), compared to the peer average of 1.0 times.

B.Riley suggests this discount is unwarranted, noting that operating businesses typically command premiums to pure treasury plays rather than discounts.

The research indicates the current valuation creates challenges for Sequans, as depressed pricing limits the company’s ability to raise capital accretively, maintaining pressure on the stock price.

B.Riley projects Sequans could improve its mNAV to 1.2 times over the next 12 months and forecasts the company’s Bitcoin holdings will reach approximately 9,400 coins by year-end 2026.

In other recent news, Sequans Communications reported its Q2 2025 earnings, showcasing modest revenue growth alongside strategic moves in IoT and Bitcoin investments. The company achieved revenues of $8.1 million, marking a 1.1% increase compared to the previous year. Despite this growth, Sequans reported a net loss of $9.1 million. These developments come as the company continues to focus on its strategic initiatives. Analysts have not provided upgrades or downgrades following this earnings report. The earnings data and strategic focus are crucial for investors evaluating Sequans’ future potential. These recent developments provide insight into the company’s current financial health and strategic direction.

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