BofA update shows where active managers are putting money
Investing.com - Lake Street Capital Markets raised its price target on Lantronix, Inc. (NASDAQ:LTRX) to $5.00 from $4.00 on Thursday, while maintaining a Buy rating on the stock. The company’s shares, currently trading at $3.71, have shown strong momentum with a 44.92% gain over the past six months. According to InvestingPro data, analyst price targets range from $4.00 to $8.00, suggesting potential upside from current levels.
The research firm cited Lantronix’s solid year-end finish and management’s upbeat outlook, expressing confidence that momentum can continue throughout fiscal year 2026. Lake Street specifically highlighted potential growth opportunities in the drone sector, which it believes could become a meaningful contributor to the company’s profit and loss statement over the longer term. InvestingPro analysis indicates the company maintains healthy liquidity with a current ratio of 2.68, operating with a moderate debt level.
Lake Street expects improved earnings leverage to become more visible in FY26, benefiting from both a return to top-line growth and the impact of cost reduction measures implemented by the company. The firm noted that while headline growth estimates might not appear exceptional, they reflect mid-teens growth when excluding the Gridspertise business.
The research firm pointed out that Lantronix currently trades at approximately 10 times Lake Street’s calendar year 2026 earnings per share estimate, excluding cash.
Lake Street believes Lantronix shares can move higher from current levels as investors begin to better appreciate the durability of the company’s growth and the improving earnings per share potential in its business model.
In other recent news, Lantronix Inc. disclosed its Q4 2025 financial results, highlighting a challenging yet dynamic fiscal period. The company reported a quarterly revenue of $28.8 million, representing a 4% increase compared to the previous year, excluding Gridspertise. However, the earnings per share (EPS) on a non-GAAP basis fell to $0.01, indicating a decline in profitability. Despite these mixed results, Lantronix’s stock saw a slight increase in aftermarket trading. These developments come amidst a complex market environment where the company continues to navigate various challenges. Analysts and investors are closely monitoring these financial metrics to assess Lantronix’s performance and strategic direction. The results underscore the ongoing market dynamics and the company’s efforts to maintain growth. These recent developments provide insights into Lantronix’s current financial health and market position.
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