Research Alert: CFRA Maintains Hold Opinion On Shares Of Netgear, Inc.
11:30 PM EST, 02/07/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target price by $5 to $45, 13.9x our '21 EPS estimate, a slight premium to peers, reflecting our stronger growth outlook. We increase our '21 EPS estimate by $0.43 to $3.24 and set '22's at $3.61. NTGR reported Q4 operating EPS of $0.99 vs $0.34, $0.15 above consensus. Q4 revenue increased 45.1%, led by 61.1% growth in the Connected Home segment, driven by elevated demand across both its service provider and retail channels, while the SMB segment continued to recover, growing 2.7%. Component shortages continue to act as a headwind, while higher spending on air freight impacts margins, but we are beginning to see a return to normal. We are concerned that NTGR is losing share in the U.S. retail Wifi market, which at 41% in Q4 has been slowly eroding over the past few quarters.