Genasys stock holds steady with Northland $6 price target

Published 12/02/2025, 16:46
Genasys stock holds steady with Northland $6 price target

On Wednesday, Northland maintained a positive outlook on Genasys Inc. (NASDAQ:GNSS), reiterating an Outperform rating and a $6.00 price target, representing an 85% upside from the current price of $3.25. The firm’s analysts highlighted the company’s performance, noting that Genasys reported a 59% increase in revenue for the first quarter of 2025 and exceeded expectations on EBITDA. According to InvestingPro data, the stock has delivered an impressive 60.77% return over the past year, though it’s currently trading above its Fair Value.

Genasys anticipates initial revenue recognition from a project involving a Puerto Rico dam in the second quarter, with full supply delivery expected in May followed by more revenue in June. The company is also preparing for a significant increase in activity related to the dam project in the September quarter, along with an additional cash receipt of $11 million. With analysts forecasting 137% revenue growth for FY2025, InvestingPro subscribers can access 8 additional key insights about GNSS’s growth prospects and financial health.

The increased interest in Genasys’ software offerings is attributed to the company’s successful deployment in Los Angeles. Management expressed optimism regarding the potential for a CROWS order, indicating a positive trend in demand for the company’s products and services.

Northland’s continued endorsement comes as Genasys is poised to recognize significant revenue milestones in the upcoming months. The company’s financial outlook appears to be strengthening, with notable developments expected to contribute to its performance throughout the year.

In other recent news, Genasys Inc. reported its Q1 FY2025 earnings, surpassing EPS expectations with a reported loss of $0.09 per share, outperforming the forecasted loss of $0.16. However, the company fell short of revenue expectations, posting $6.9 million compared to the anticipated $6.99 million. Despite the revenue miss, the significant EPS beat suggests effective cost management and operational improvements. Genasys Inc. also demonstrated strong performance in both its software and hardware segments. Recurring software revenue saw a notable increase of 69% year-over-year, while total software revenue grew by 64%. The hardware segment also performed well, with a revenue increase of 57% compared to the previous year. These gains contributed to an improved gross profit margin of 45.8%, up nearly 12 percentage points from the prior year. Looking ahead, Genasys Inc. anticipates continued growth in its hardware and software businesses, with steady revenue contributions expected from its ongoing Puerto Rico dam project. The company’s expanding pipeline of opportunities, especially following the LA County fires, positions it for future success.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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