Stifel Initiates Coverage on Netgear (NTGR) with a Buy Rating and $35 Price Target

Stifel initiates coverage on Netgear (NTGR) with a "Buy" rating and a price target of $35.00 USD. The firm expects the stock to outperform its peers in the market. Netgear provides networking technologies for businesses, homes, and service providers. The company has two segments: NETGEAR for Business and Connected Home. Analysts forecast an average target price of $29.00 with a high estimate of $29.00 and a low estimate of $29.00. The estimated GF Value for Netgear in one year is $14.89, suggesting a downside of 39.5% from the current price.

Stifel, a leading financial services firm, has initiated coverage on Netgear (NTGR) with a "Buy" rating and a price target of $35.00 USD. The firm expects the stock to outperform its peers in the market, driven by the company's robust networking technologies for businesses, homes, and service providers. Netgear operates in two segments: NETGEAR for Business and Connected Home, offering reliable, high-performance networking solutions tailored to diverse organizational needs.

Analysts at Stifel have highlighted several growth opportunities for Netgear. The firm expects the company to deliver double-digit revenue gains in its business segment, driven by initiatives such as a professional audio-visual platform, expanded broadcasting partnerships, and the acquisition of cybersecurity firm Exium. Stifel projects Netgear will return to operating profitability by 2027 as revenue shifts towards higher-margin enterprise networking.

In home networking, Stifel anticipates that a refreshed product lineup and stabilizing consumer demand will help Netgear remain competitive. Subscription services such as Armor and Insight are also identified as long-term drivers, providing high-margin recurring revenue streams that strengthen Netgear’s full network offering.

The $35 target is based on a 1.0 times sales multiple and discounted cash flow analysis, reflecting confidence in the turnaround while accounting for risks in execution. Netgear currently trades at just 0.6 times estimated 2026 sales, a steep discount to peers.

According to the one-year price targets offered by analysts, the average target price for Netgear is $29.00, indicating an upside of 17.84% from the current price of $24.61. The consensus recommendation from 2 brokerage firms is a "2.5" rating, indicating "Outperform" status. The estimated GF Value for Netgear in one year is $14.89, suggesting a downside of 39.5% from the current price.

Investors and stakeholders are advised to consider this new rating and price target as part of their investment strategy. The "Buy" rating from Stifel indicates a strong endorsement, suggesting that the firm expects Netgear to outperform its peers in the market.

References:

[1] https://stockinvest.us/stock/NTGR
[2] https://www.gurufocus.com/news/3075309/stifel-initiates-coverage-on-netgear-ntgr-with-a-buy-rating-ntgr-stock-news
[3] https://uk.finance.yahoo.com/news/netgear-turnaround-under-ceo-could-160806627.html
[4] https://ca.finance.yahoo.com/news/netgear-turnaround-under-ceo-could-160806573.html