Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Seaport Global Securities initiated coverage on NETGEAR (NASDAQ:NTGR) Wednesday with a Buy rating and a price target of $40.00. The stock, currently trading near its 52-week high with a market capitalization of $940 million, has delivered an impressive 63% return over the past year.
NETGEAR, which manufactures networking equipment for homes and small businesses including Wi-Fi access points and unmanaged switches, holds a leading position in the US market and ranks among the top three suppliers globally.
The company faced challenges from low-price Chinese competitors like TP-Link and premium offerings from Amazon’s Eero and Google’s Nest, leading to declining results after a brief pandemic-driven sales increase.
Under new leadership since 2024, NETGEAR has implemented a turnaround strategy focused on rationalizing its product line, expanding into adjacent markets, and investing in software and services, with early signs of improvement in revenue, margins, and working capital.
The company’s near-term focus remains on the small business segment through channel growth and product additions, while its software annual recurring revenue reached $35 million in 2024 and continues to grow strongly.
In other recent news, NETGEAR Inc. reported impressive earnings for the second quarter of 2025, surpassing revenue expectations. The company achieved a revenue of $170.5 million, exceeding the anticipated $162.06 million, which marked a 5.21% surprise. Additionally, NETGEAR posted an earnings per share (EPS) of $0.06, defying forecasts of a -$0.15 loss, representing a 140% surprise. Stifel has reiterated its Buy rating for NETGEAR, maintaining a price target of $35.00 following meetings with company management. The investment firm had previously initiated coverage on NETGEAR with a Buy rating, emphasizing confidence in the leadership of CEO CJ Prober. These developments highlight a positive outlook for the networking equipment provider amidst recent financial performance and analyst support.
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