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On Thursday, Stifel analysts adjusted their outlook on Inseego Corp. (NASDAQ:INSG), reducing the price target to $8.00 from the previous $11.00, while keeping a Hold rating on the stock. The change reflects a cautious stance towards the company’s future revenue and free cash flow (FCF) sustainability, as well as its execution on strategic growth objectives. According to InvestingPro data, three analysts have recently revised their earnings expectations downward for the upcoming period, with analyst targets ranging from $8.00 to $16.50.
Inseego has been recognized for its strong performance in a difficult market, managing to significantly strengthen its balance sheet and improve FCF generation. The company’s efforts to turn around its financials have been noted, with a strong free cash flow yield of 31% and revenue of $191.24 million in the last twelve months. However, analysts continue to look for more definitive signs of growth and strategic execution. For deeper insights into Inseego’s financial health and growth potential, InvestingPro subscribers can access comprehensive analysis and over 10 additional ProTips.
Stifel’s commentary highlighted the need for clearer indicators of Inseego’s ability to achieve consistent quarter-over-quarter growth, particularly in the second half of the calendar year 2025. The analysts expressed a desire to see a return to sustainable growth in both revenue and FCF before altering their rating. Recent performance data shows the stock has faced significant headwinds, with a 63% decline over the past six months, though InvestingPro’s Fair Value analysis suggests the stock is currently undervalued.
The Hold rating suggests that Stifel analysts are advising investors to maintain their current position in Inseego stock until these clearer signals of growth and execution emerge. The revised price target of $8.00 represents a more conservative valuation of the company based on the analysts’ assessments.
The analysts’ comments indicate a recognition of Inseego’s impressive execution amidst a challenging environment, as well as the company’s ability to improve its financial standing. However, the emphasis remains on the need for Inseego to demonstrate a trajectory of consistent growth to warrant a more optimistic rating.
In other recent news, Inseego Corp reported significant financial performance in Q4 2024, with a 33% year-over-year increase in revenue, reaching $48.1 million. For the full year 2024, the company’s revenue grew by 40% to $191.2 million, driven by strategic moves such as the sale of its telematics business. Inseego also significantly reduced its debt from $165 million to $56 million, strengthening its financial position. Additionally, the company appointed CBIZ (NYSE:CBZ) CPAs P.C. as its new independent auditor following the acquisition of Marcum LLP’s attest business. Meanwhile, Stifel analysts have adjusted the stock price target for Inseego to $11 from $12, maintaining a Hold rating. The revision follows Inseego’s Q4 results, which exceeded expectations, though projections indicate a potential sales decline in the March quarter. The company’s new CEO, Juho Sarvikas, has outlined strategies for consistent growth, including expanding the product lineup and exploring new market opportunities. Despite these developments, Stifel is awaiting further evidence of sustainability before altering its stance on the stock.
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