Stifel reiterates Buy rating on NETGEAR stock, maintains $35 price target

Published 08/09/2025, 13:16
Stifel reiterates Buy rating on NETGEAR stock, maintains $35 price target

Investing.com - Stifel has reiterated its Buy rating and $35.00 price target on NETGEAR (NASDAQ:NTGR) following meetings with company management on September 4-5, 2025. The target represents potential upside from the current price of $27.95, with the stock already showing impressive momentum through a 77.35% gain over the past year.

The investment firm hosted NETGEAR CEO Charles (CJ) Prober and CFO Bryan Murray for an investor roadshow in Los Angeles and San Francisco, California, which reinforced Stifel’s positive outlook on the networking equipment provider. According to InvestingPro data, NETGEAR maintains strong financial fundamentals with more cash than debt on its balance sheet and a healthy current ratio of 2.87.

Stifel noted that while NETGEAR remains in the "early innings" of its business transformation, management is taking a prudent approach to realigning spending and focusing on higher-margin product lines. The company’s prudent management is reflected in its profitability, with InvestingPro showing net income of $63.73 million in the last twelve months.

The firm expressed confidence in NETGEAR’s strategy to evolve from a pure networking vendor into a hybrid hardware-plus-software provider, which is expected to drive long-term operating profitability.

Stifel’s $35 price target represents a 1.0x CY26E EV/Sales multiple, reflecting the firm’s outlook on NETGEAR’s ongoing business transformation efforts.

In other recent news, NETGEAR Inc. reported its earnings for the second quarter of 2025, exceeding revenue expectations with a total of $170.5 million. This figure surpassed the anticipated $162.06 million, marking a surprise increase of 5.21%. Additionally, the company posted an earnings per share (EPS) of $0.06, defying the forecasted loss of -$0.15, resulting in a 140% surprise. These results highlight a significant positive shift in the company’s financial performance. In related developments, Stifel initiated coverage on NETGEAR with a Buy rating and set a price target of $35.00. The investment thesis from Stifel focuses on the leadership of new CEO CJ Prober, who took charge in the first quarter of 2024. These recent developments provide investors with crucial insights into NETGEAR’s financial health and strategic direction.

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