Street Calls of the Week
Investing.com - Franklin Wireless Corp. (NASDAQ:FKWL) received a Buy rating from Lake Street Capital Markets on Monday, with a price target of $6.00. The stock, currently trading at $4.85 with a market cap of $57.15 million, has shown strong momentum with a 12% return over the past year. According to InvestingPro analysis, the company appears fairly valued at current levels.
Lake Street Capital Markets initiated coverage on the mobile hotspot provider, noting that Franklin Wireless is positioned to benefit from growth in the mobile hotspot market, which is projected to expand from $3.2 billion in 2024 to $6.5 billion by 2033. The company has demonstrated strong execution with impressive revenue growth of nearly 50% in the last twelve months, according to InvestingPro data.
The market is expected to grow at a compound annual growth rate (CAGR) of 8.5% from 2026 to 2033, according to data from Verified Market Reports cited by Lake Street Capital Markets.
Lake Street Capital Markets identified several growth drivers for Franklin Wireless, including hybrid work operations, consumer need for reliable backup internet at home, and increasing demand for mobile connectivity.
The research firm highlighted Franklin Wireless’s position as a lower-cost provider with U.S.-based headquarters as competitive advantages that could help the company gain market share in the expanding mobile hotspot sector.
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