Rosenblatt Securities Decreases Harmonic Inc’s Target Price From $22.00 to $18.00
August 4, 2023
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Harmonic Inc ($NASDAQ:HLIT) is a provider of video delivery infrastructure, playout solutions, and software-based media processing solutions. Their products include encoders, transcoders, multiplexers, and other media delivery infrastructure. Earlier this week, Rosenblatt Securities issued a research report to their clients that decreased Harmonic’s target price from $22.00 to $18.00. Rosenblatt Securities analysts had previously noted their optimism for the company’s strategic initiatives and product portfolio, however, they have now changed their stance and reduced their target price accordingly. The analysts noted that the decrease in Harmonic’s target price was due to the company’s decreasing revenue and their inability to reach their profit goals.
Additionally, the analysts warned that they expect the company’s revenue to continue declining, resulting in further pressure on the stock price. The analysts also noted that it may take some time for Harmonic to return to profitability.
Stock Price
On Thursday, the stock opened at $11.2 and closed at $10.8, representing a 4.6% decrease from its previous closing price of $11.4. Analysts believe that the current target price more accurately reflects the company’s performance and its outlook for the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Harmonic Inc. More…
| Total Revenues | Net Income | Net Margin |
| 633.68 | 21.52 | 3.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Harmonic Inc. More…
| Operations | Investing | Financing |
| 0.88 | -7.58 | -45.72 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Harmonic Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 690.35 | 347.55 | 3.08 |
Key Ratios Snapshot
Some of the financial key ratios for Harmonic Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.5% | 113.3% | 7.6% |
| FCF Margin | ROE | ROA |
| -1.1% | 8.9% | 4.4% |
Analysis
At GoodWhale, we conducted an analysis of HARMONIC INC‘s financials and found that the company has an intermediate health score of 6/10 when considering its cashflows and debt. We believe that HARMONIC INC is likely to sustain future operations in times of crisis. Our Star Chart revealed that HARMONIC INC is strong in growth and profitability and medium in asset, but weak in dividend. Additionally, based on our assessment, the company is classified as a ‘gorilla’, which means it has achieved stable and high revenue or earnings growth due to its strong competitive advantage. Given its strong performance in growth and profitability, HARMONIC INC may be attractive to value investors and growth investors looking for a high return on their investments. The company also has a strong competitive advantage which could make it attractive to long-term investors who want to benefit from its consistent performance over time. More…
Peers
The company has been competing against its competitors, Radiation Technology Inc, Teleste Oyj, and Eutelsat Communications, for the past several years. The competition between the companies has been fierce, with each company trying to outdo the other in terms of innovation and technology.
– Radiation Technology Inc ($TPEX:6514)
Radiation Technology Inc is a company that specializes in the production of radiation products and services. The company has a market capitalization of 1.45 billion as of 2022 and a return on equity of 13.65%. The company’s products and services are used in a variety of industries, including healthcare, government, and industrial. Radiation Technology Inc has a long history of providing quality products and services to its customers. The company is headquartered in the United States and has a global customer base.
– Teleste Oyj ($LTS:0K1Q)
Founded in 1984, Teleste is a Finnish company that provides broadband video and data communication systems and services. The company serves a variety of industries, including telecommunications, energy, healthcare, and transportation. Teleste has a market capitalization of 61.06 million euros as of 2022 and a return on equity of 3.58%. The company’s products and services include broadband video headend and edge solutions, data communication networks, and passenger information and entertainment systems.
– Eutelsat Communications ($LTS:0JNI)
Eutelsat Communications is a leading satellite operator, providing reliable and secure satellite-based connectivity solutions for broadcast, telecom, corporate and government customers worldwide.
Eutelsat Communications has a market capitalization of 2.16 billion as of 2022 and a return on equity of 9.77%. The company provides reliable and secure satellite-based connectivity solutions for broadcast, telecom, corporate and government customers worldwide. Eutelsat Communications is headquartered in Paris, France.
Summary
Harmonic Inc. recently had its target price decreased from $22.00 to $18.00 by Rosenblatt Securities. This decrease in target price has negatively impacted the stock price and is an indication of a bearish sentiment with regards to the company. Investors may need to reassess their current positions in the company and investigate further before deciding if it would be wise to enter or exit the stock. Fundamental analysis on the company is recommended in order to make the most informed decision possible.
Additionally, investors must be aware of any upcoming news or reports which may affect the stock’s performance in order for them to stay up to date with the latest developments.
