Aug. 22 at 5:49 PM
Stifel initiated coverage on Netgear with a Buy rating and
$35 PT, citing new leadership setting the stage for a turnaround with growth in enterprise networking and subscriptions.
Analysts highlighted CEO CJ Prober’s changes since early 2024, Netgear’s pro AV platform, expanded streaming partnerships, and the Exium cybersecurity acquisition as key growth drivers, expecting double-digit revenue gains in enterprise.
Stifel sees a shift toward higher-margin enterprise revenue returning Netgear to operating profitability by 2027.
In consumer networking, a refreshed product line and stabilizing demand should support competitiveness, while subscription services like Armor and Insight are seen as high-margin recurring revenue streams.
The
$35 PT is based on 1.0x sales and DCF analysis, reflecting confidence in the turnaround while noting execution risks.
$NTGR