Stifel maintains Hold rating on Inseego stock, cites growth concerns

Published 18/07/2025, 13:42
Stifel maintains Hold rating on Inseego stock, cites growth concerns

Investing.com - Stifel has reiterated its Hold rating and $8.00 price target on Inseego Corp. (NASDAQ:INSG). According to InvestingPro data, the stock currently trades at $7.19, with a notable free cash flow yield of 23%.

The research firm acknowledged Inseego’s "impressive execution in a challenging environment" and noted the company had materially strengthened its balance sheet while achieving a significant turnaround in free cash flow generation. The company’s levered free cash flow stands at $24.68 million, with a current ratio of 1.12.

Despite these positive developments, Stifel expressed concerns about two key areas that prevent an upgrade at this time.

The firm specifically cited the need for "greater clarity into a return to more sustainable growth in revenue and FCFs" as its first concern regarding Inseego’s outlook.

Stifel also indicated it seeks more evidence of "execution on the company’s strategic vision to return to more consistent q/q growth," particularly in the second half of calendar year 2025.

In other recent news, Inseego Corp reported its financial results for the first quarter of 2025, highlighting significant growth in its services and mobile revenue streams. The company achieved a record gross margin of 47.5% and more than doubled its adjusted EBITDA compared to the previous year. Inseego’s services revenue grew nearly 50% year-over-year, while its mobile segment saw a 16% increase. The company has provided revenue guidance of $37-$40 million for the second quarter of 2025, with an adjusted EBITDA guidance of $2.5-$3.5 million.

Inseego is also set for preliminary inclusion in the Russell 2000 Index, which is anticipated to enhance its visibility among institutional investors. In terms of analyst perspectives, TD Cowen maintained a Hold rating but lowered the price target for Inseego to $10.00 from $13.00, citing concerns about growth in the Fixed Wireless Access segment. The analyst firm expressed a cautious stance on the company’s growth prospects, pointing to the unproven execution of its strategy. These developments come as Inseego continues to expand its fixed wireless access and mobile broadband business, aiming to leverage the increasing demand for secure, high-performance wireless broadband solutions.

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.