Craig-Hallum initiates Ceragon stock with Buy, $5 target

Published 13/03/2025, 14:36
© Ceragon Networks PR

On Thursday, Craig-Hallum initiated coverage of Ceragon Networks (NASDAQ:CRNT) with a Buy rating and set a price target of $5.00. The firm’s analyst, Christian Schwab, noted the recent decline in Ceragon’s share price following the company’s Q4 results as an opportunity for investors. According to InvestingPro data, the stock has declined over 46% year-to-date, with current analyst targets ranging from $6 to $10.

Schwab highlighted that Ceragon is facing limited visibility as it enters 2025, but management remains hopeful for a recovery in the second half of the year. Despite the current uncertainties, the analyst pointed out that Ceragon has a modest net cash position on its balance sheet. The company maintains a healthy current ratio of 1.72 and operates with moderate debt levels, achieving an "GOOD" Financial Health score according to InvestingPro analysis.

The valuation of Ceragon’s shares also played a significant role in the analyst’s positive outlook. Schwab pointed out that the stock is currently trading at approximately 8 times the 2025 Street EPS estimate and 6 times the 2026 Street EPS estimate. These multiples suggest to the analyst that the stock is undervalued, a view supported by InvestingPro’s Fair Value analysis. Discover more insights and 10+ additional ProTips about CRNT with an InvestingPro subscription, including detailed valuation metrics and comprehensive financial analysis.

"We believe the recent sell-off in shares following the company’s Q4 results has created an attractive entry point," Schwab stated. He further emphasized the company’s financial position and the stock’s valuation metrics as key reasons for investors to consider the stock.

Ceragon Networks is now under the watch of Craig-Hallum with a positive outlook for the latter part of the year. Investors and market watchers will be looking forward to seeing if the company can indeed achieve the recovery anticipated by management in the second half of 2025.

In other recent news, Ceragon Networks Ltd. reported an 18.3% increase in quarterly revenue and earnings of $0.04 per share for the fourth quarter, highlighting a positive financial performance. The company also finalized the acquisition of End 2 End Technologies, enhancing its service offerings and expanding its customer base, as detailed in a recent SEC filing. Ceragon Networks participated in the Mobile World Congress 2025, where it unveiled new products aimed at boosting wireless communication networks, signaling its commitment to innovation in the rapidly evolving market. Furthermore, Ceragon announced its upcoming presentation at the 37th Annual Roth Conference, emphasizing its dedication to engaging with the investment community. The company’s Chief Financial Officer, Ronen Stein, has been actively involved in these developments, underscoring Ceragon’s focus on transparency and strategic growth. These actions reflect Ceragon’s efforts to strengthen its market position and adapt to the dynamic telecommunications industry. Investors and industry watchers are closely monitoring these developments to assess their impact on Ceragon’s future performance. The company’s comprehensive approach to expanding its portfolio and market presence continues to attract attention from stakeholders.

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