Street Calls of the Week
Investing.com - Needham raised its price target on Lantronix, Inc. (NASDAQ:LTRX) to $5.50 from $4.50 on Tuesday, while maintaining a Buy rating on the stock. The new target represents potential upside from the current price of $4.49, with InvestingPro data showing analyst targets ranging from $4.50 to $8.00, and a Strong Buy consensus recommendation.
The firm cited increased confidence in Lantronix’s emerging drone business after discussions with CEO Saleel Awsare in recent weeks. Lantronix , with its current market capitalization of $175.79 million and annual revenue of $122.92 million, expects to generate "several million" dollars in drone sales this year from its system-on-a-module solution, which processes visual and audio data and communicates with terrestrial networks.
Needham noted that while Lantronix is new to the drone business, the company is leveraging its strong background in audio and video camera applications, which has been advanced through its success in video conferencing hardware modules.
The research firm highlighted Lantronix’s recently announced collaboration with Teledyne cameras and its win with Red Cat, announced in mid-August, as early evidence of success in the drone segment.
Needham’s decision to raise the price target was based on Lantronix’s "positive momentum and a growing pipeline" in its drone business, supported by the stock’s impressive 80.32% price return over the past six months.
In other recent news, Lantronix Inc. reported its Q4 2025 earnings, showing a 4% year-over-year increase in revenue, reaching $28.8 million, excluding Gridspertise. However, the company’s non-GAAP earnings per share fell to $0.01. In addition to its financial results, Lantronix launched EdgeFabric.ai, a no-code development platform aimed at enabling businesses to design and deploy Edge AI applications more efficiently. This new platform is expected to significantly reduce development time, according to the company’s announcement.
Furthermore, Lake Street Capital Markets increased its price target for Lantronix from $4.00 to $5.00, maintaining a Buy rating. The firm cited the company’s strong year-end performance and positive management outlook, with potential growth in the drone sector highlighted as a promising area for future profitability. These developments reflect Lantronix’s strategic moves and market positioning as it navigates a challenging financial landscape.
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