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On Tuesday, Canaccord Genuity updated its outlook on Alarum Technologies (NASDAQ:ALAR), increasing the price target to $15.00 from the previous $11.00 while maintaining a Buy rating on the stock. Currently trading at $11.33 with a market capitalization of $82.85 million, the company maintains a healthy gross profit margin of 72.43%. The firm’s analyst, Kingsley Crane, provided a positive perspective on the company’s future, citing emerging signs of growth and free cash flow (FCF) support.
Crane highlighted the potential for investors to benefit from Alarum Technologies’ performance, especially with the company’s growth expected to pick up in the second half of fiscal year 2025. The company currently generates a strong free cash flow yield of 13% and trades at a P/E ratio of 14.8. The new price target reflects a valuation of 2.6 times the calendar year 2026 estimated sales and 15 times the calendar year 2026 estimated FCF.
The analyst’s optimism is based on the company’s revised guidance, which suggests that Alarum Technologies is on track to achieve growth rates in the mid-20s percentage range from Q3 2025 to Q1 2026. This growth is anticipated as the company compares against earlier periods that presented more challenges. According to InvestingPro, the company appears undervalued based on its Fair Value analysis, with 8 additional ProTips available to subscribers.
In response to the promising growth assumptions, Canaccord Genuity has adjusted its target revenue multiple for Alarum Technologies. The firm’s revised modeling takes into account the upward trajectory of the company’s growth, which is expected to solidify in the upcoming quarters.
The positive outlook from Canaccord Genuity reflects confidence in Alarum Technologies’ ability to capitalize on favorable market conditions and to continue its growth momentum into the next fiscal year. The maintained Buy rating alongside the raised price target suggests that the firm sees a compelling opportunity for investors with Alarum Technologies shares.
In other recent news, Alarum Technologies Ltd reported a decrease in revenue and net profit for the first quarter of 2025 compared to the previous year. Revenue fell to $7.1 million from $8.4 million in Q1 2024, while net profit dropped significantly to $400,000 from $2.8 million year-over-year. Despite these declines, the company remains focused on expanding its capabilities in AI data collection and strengthening its proxy network. Alarum Technologies forecasts revenue of $7.9 million for Q2 2025, with adjusted EBITDA expected to range between $500,000 and $800,000. The company is investing heavily in its infrastructure to capture long-term value and meet the evolving demands of its AI-driven customer base. Additionally, Alarum Technologies’ strong relationships with large tech companies continue to be a competitive advantage. The firm is also experiencing growing demand from both major tech giants and emerging startups for its data collection and unblocking products. These developments highlight Alarum’s strategic efforts to adapt to the rapidly changing market landscape.
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