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On Wednesday, Northland initiated coverage on Owlet Inc. (NYSE: OWLT), a company specializing in digital parenting technology, with an Outperform rating and a price target of $7.00. The firm highlighted Owlet’s role in revolutionizing infant health monitoring through its ecosystem of connected devices that provide real-time data and insights to parents. According to InvestingPro data, Owlet has demonstrated strong revenue growth of 44.5% over the last twelve months, though the company currently maintains a modest market capitalization of $56.5 million.
Owlet’s technology aims to bridge a significant gap in infant wellness and remote monitoring by offering parents critical health information from the comfort of their homes. The company’s products are designed to empower parents with the necessary tools to keep track of their infant’s well-being, leveraging advancements in digital health technology. InvestingPro analysis reveals that while Owlet holds more cash than debt on its balance sheet, the company is currently experiencing rapid cash burn - one of several key insights available in the comprehensive Pro Research Report.
The new coverage by Northland reflects confidence in Owlet’s market position and its potential for growth within the digital health sector. The $7.00 price target suggests that Northland sees a promising financial future for the company’s stock. InvestingPro’s Fair Value analysis indicates that Owlet is currently undervalued, with analyst targets ranging from $8.50 to $15.00, suggesting significant potential upside.
Owlet has been acknowledged for its comprehensive approach to infant health, creating a connected environment that enhances the parenting experience. The company’s innovative solutions have set a standard for in-home infant monitoring, providing peace of mind to families.
The Outperform rating indicates that Northland believes Owlet Inc. shares will perform better than the average return of the stocks that Northland covers, suggesting a positive outlook for investors interested in the digital parenting technology space.
In other recent news, Owlet Inc. reported a 37% increase in revenue for the fourth quarter of 2024, reaching $20.5 million. The company also recorded a full-year revenue of $78.1 million, marking a 45% growth compared to the previous year. Owlet’s gross margin improved significantly, with Q4 margins at 53.5%, contributing to a full-year margin of 50.4%. The company launched the Owlet360 subscription service in January 2025, which already boasts over 25,000 subscribers. Additionally, the DreamSock device has achieved a 10% adoption rate in the U.S. Owlet projects 2025 revenue between $88 million and $92 million, with expectations of maintaining gross margins between 50% and 52%. The company aims for full-year adjusted EBITDA profitability, focusing on increasing DreamSock adoption and expanding medical channels. Despite facing intense competition and regulatory challenges, Owlet remains optimistic about its growth prospects.
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