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Investing.com - Canaccord Genuity has reiterated its Buy rating and $27.00 price target on Alarum Technologies (NASDAQ:ALAR) stock despite a sell-off in Friday’s trading session. The stock, currently trading at $9.17, has fallen nearly 19% over the past week according to InvestingPro data.
The research firm views the current price weakness as a buying opportunity for a company positioned at what it calls a "critical intersection within AI data pipelines" that is experiencing rapidly increasing customer demand. InvestingPro data shows the stock’s RSI indicates oversold territory, potentially supporting Canaccord’s view on timing.
Canaccord believes Alarum Technologies has strong top-line growth potential through the remainder of fiscal year 2025 and into next year, suggesting the current valuation of approximately 1.5 times fiscal year 2026 sales makes the shares "simply too cheap." This view aligns with InvestingPro’s Fair Value assessment, which indicates the stock is currently undervalued with solid fundamentals including a healthy current ratio of 2.99.
The $27 price target represents a multiple of 4 times the firm’s estimated fiscal year 2026 sales, indicating significant upside potential from current levels.
Canaccord also noted that Alarum Technologies could experience a "significant re-rating potential in excess of 4x sales" if the company delivers multiple quarters of strong sequential growth.
In other recent news, Alarum Technologies reported its Q3 2025 earnings, showcasing a notable 81% increase in revenues compared to the previous year, reaching $13 million. However, the company’s gross margins declined to 56%, down from 74% in the same quarter last year. Additionally, Alarum Technologies saw its net profit decrease significantly to $0.1 million, compared to $4.2 million in Q3 2024. These financial results have raised concerns among investors regarding the company’s profitability, despite the impressive revenue growth. The stock’s reaction in premarket trading highlighted these concerns, although stock price movements are not the focus here. No recent analyst upgrades or downgrades were reported for Alarum Technologies. There were also no new mergers or acquisitions announced by the company. These developments are crucial for investors keeping an eye on Alarum Technologies’ financial health and future prospects.
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