Needham lowers Harmonic stock price target to $12 on cable spending slowdown

Published 29/07/2025, 12:40
Needham lowers Harmonic stock price target to $12 on cable spending slowdown

Investing.com - Needham lowered its price target on Harmonic Inc . (NASDAQ:HLIT) to $12.00 from $14.00 on Tuesday, while maintaining a Buy rating on the stock amid continued weakness in cable upgrade spending. According to InvestingPro data, the stock currently trades at $9.14, down nearly 31% year-to-date, though analysis suggests the stock may be undervalued at current levels.

The video delivery infrastructure company’s Broadband revenues missed $100 million for the seventh time in ten quarters, reflecting the ongoing slowdown in cable operator investments.

Despite these challenges, Harmonic managed to beat lowered second-quarter revenue and EPS estimates by 8% and $0.07 respectively versus consensus. However, the company provided cautious guidance once again, 16% below revenue consensus and $0.07 below earnings consensus.

Needham noted that Harmonic’s performance remains heavily dependent on its two major customers, Comcast (NASDAQ:CMCSA) and Charter, whose upgrade programs have largely stalled despite these initiatives being described as "strategic and vital" to the operators.

The research firm indicated it still believes in its investment thesis for Harmonic but expects the turnaround to be delayed until fiscal 2026, prompting the reduction in estimates and price target.

In other recent news, Harmonic Inc. reported impressive second-quarter results for 2025, surpassing both earnings and revenue expectations. The company achieved an earnings per share (EPS) of $0.09, far exceeding the anticipated $0.02, resulting in a 350% surprise. Revenue figures also outperformed predictions, reaching $138 million compared to the forecasted $127.73 million, marking an 8.04% increase. These figures highlight a strong performance for Harmonic in the recent quarter. Additionally, following the announcement of these results, the company’s stock experienced a rise in aftermarket trading, indicating positive investor sentiment. While specific stock price movements are not discussed, the overall outlook from analysts remains positive. The company’s ability to exceed forecasts in both earnings and revenue is a key highlight for investors. These developments reflect a significant achievement for Harmonic in the competitive market landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.