Harmonic stock rating reiterated at Buy by Rosenblatt on broadband outlook

Published 17/06/2025, 12:44
Harmonic stock rating reiterated at Buy by Rosenblatt on broadband outlook

Rosenblatt Securities maintained its Buy rating and $11.00 price target on Harmonic Inc . (NASDAQ:HLIT) following investor meetings with the company’s leadership last week. According to InvestingPro data, analyst targets range from $10 to $14, with the stock currently trading at $8.91, suggesting potential upside. The stock has declined over 32% in the past six months.

The research firm met with Harmonic’s CEO Nimrod Ben Natan and CFO Walter Jankovic, reinforcing its view that the company is in the early stages of a multi-year product cycle as it enables next-generation broadband infrastructure development. InvestingPro analysis shows management’s confidence through aggressive share buybacks, while maintaining a moderate debt level with a debt-to-equity ratio of 0.33.

Rosenblatt noted that Harmonic’s near-term growth is currently constrained by slower-than-anticipated rollouts by its largest customers, though these issues appear to be resolving.

The firm expects an improved performance in the second half of the year for Harmonic, with a potential acceleration in growth rate in 2026 as customer deployment issues are addressed.

Despite maintaining its positive long-term outlook on the company, Rosenblatt acknowledged the lack of specific near-term catalysts might keep Harmonic shares trading within their current range.

In other recent news, Harmonic Inc. reported its Q1 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.11, significantly higher than the forecasted $0.05. The company’s revenue reached $133.1 million, exceeding the anticipated $128.01 million, marking a 9% year-over-year increase. Despite these positive results, Harmonic has retracted its full-year guidance due to uncertainties around tariffs and their potential impact on the economy and customer behavior. Rosenblatt Securities recently adjusted its price target for Harmonic, reducing it to $11 from $12, while maintaining a Buy rating, citing the company’s strong quarterly performance and new customer acquisitions. The firm’s analyst remains optimistic about Harmonic’s CableOS solution, which is expected to lead in next-generation broadband technology. Harmonic’s management highlighted strong cash flow and significant contributions from major customers such as Comcast (NASDAQ:CMCSA) and Charter. The company anticipates continued revenue growth in 2026, although it remains cautious about the immediate future due to potential tariff impacts.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.