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Investing.com - TD Cowen raised its price target on Napco Security Technologies stock (NASDAQ:NSSC) to $43.00 from $26.00 on Monday, while maintaining a Hold rating on the security systems manufacturer. According to InvestingPro data, the stock has surged 55% over the past six months, with current trading levels near its Fair Value.
The firm cited Napco’s recent results, which exceeded both TD Cowen’s estimates and the broader consensus expectations for the company’s performance.
Despite the strong results, TD Cowen noted that visibility remains weak from both a macroeconomic perspective and in relation to several key distributors for Napco.
The analyst acknowledged favorable secular trends for Napco, along with the company’s strong cash flow and zero-debt balance sheet as intriguing factors for investors.
TD Cowen’s new price target reflects a valuation of 23 times the firm’s fiscal year 2027 adjusted EBITDA estimates, with the analyst suggesting shares are "at best fully valued" at current multiples. This assessment aligns with the stock’s current EV/EBITDA multiple of 27x, suggesting rich valuation levels.
In other recent news, Napco Security Technologies reported its fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.33, compared to the forecast of $0.27. Revenue also exceeded projections, reaching $50.7 million against the anticipated $44.38 million. Following this strong performance, Craig-Hallum upgraded Napco Security’s stock rating from Hold to Buy, setting a new price target of $40.00. The firm highlighted the company’s significant earnings and improved demand environment as key factors in its decision.
Additionally, DA Davidson raised its price target for Napco Security to $45.00 from $33.00, maintaining a Buy rating due to the end of multi-quarter destocking and growth in recurring service revenue. Needham also increased its price target to $36.00 from $32.00, noting better-than-expected fourth-quarter results and a year-over-year revenue increase of 0.8%. These developments reflect a positive outlook from analysts following Napco Security’s recent financial performance.
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