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Investing.com - Lake Street Capital Markets lowered its price target on Identiv, Inc. (NASDAQ:INVE) to $5.00 from $6.00 on Friday, while maintaining a Buy rating on the security solutions provider. The stock, currently trading at $3.15, remains below the consensus analyst target range of $5.00-$6.50. According to InvestingPro analysis, Identiv appears undervalued based on its Fair Value assessment.
The research firm cited "near-term headwinds" created by the challenging macroeconomic environment, noting that visibility into the remainder of the year remains "cloudy." Lake Street acknowledged that current conditions are slowing potential merger and acquisition discussions as target companies assess the impact of tariffs. InvestingPro data shows revenue declined nearly 39% over the last twelve months, though the company maintains a strong balance sheet with more cash than debt.
Lake Street expressed that it was "impressed with the solid results given the challenging backdrop" and appreciated the new metrics provided by the company. The firm maintained its Buy rating despite the price target reduction, suggesting that an acquisition likely represents the next catalyst for Identiv shares.
The research firm recognized that some investors might be hesitant about potential integration risks of acquisitions, particularly larger ones, and noted general pushback against microcap rollup strategies. Nevertheless, Lake Street pointed to Identiv’s negative enterprise value as a factor limiting downside risk at current levels.
Lake Street concluded that investors "who can exercise some patience are presented with an attractive risk/reward opportunity" with Identiv stock, despite the reduced price target reflecting current market challenges. The stock trades at just 0.5x book value, with liquid assets exceeding short-term obligations. Discover more insights and 11 additional ProTips for Identiv with a subscription to InvestingPro, including detailed valuation metrics and comprehensive financial health analysis.
In other recent news, Identiv Inc. announced its first-quarter 2025 earnings, reporting a slight beat on earnings per share (EPS), though revenue decreased from the previous year. The company posted a GAAP net loss of $4.8 million, with an EPS of -$0.21, surpassing the forecasted -$0.25. Revenue for the quarter was $5.3 million, slightly above the $5.25 million forecast but down from $6.7 million in Q1 2024. Identiv is transitioning its production from Singapore to Thailand, with over 75% of the volume now moved. The company remains focused on new product developments in IoT and BLE technology. Additionally, Identiv’s board approved a move from a classified structure to having all directors stand for election annually, beginning with the 2026 Annual Meeting. The company ratified the appointment of BPM LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2025. Identiv also announced the resignation of several directors who did not receive a majority of "for" votes in uncontested elections.
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