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Research Alert: CFRA Maintains Hold Opinion On Shares Of Arlo Technologies, Inc.

05/07/2021 11:39

03:35 PM EDT, 05/07/2021 (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 keep our 12-month target price at $8, applying an EV/sales multiple of 1.2x to our '21 estimate, a slight premium to its three-year historical average multiple at 1.0x, reflecting recent strong results. We move our '21 loss estimate to $0.23 from a loss of $0.58 and '22's loss to $0.09 from $0.43. ARLO reported a Q1 operating loss of $0.03 vs. a loss of $0.34, $0.20 ahead of the consensus. Q1 revenue increased 26.1%, driven by a 54.8% increase in service revenue and a 356% jump in paid accounts. ARLO's turn around effort is clearly working and its refreshed product lineup has been well received. The company is on track to reach one million paid subscriber by the end of the year and will reach breakeven on a non-GAAP basis in the second half of the year. We do expect to see some modest headwinds due to supply chain issues and component shortages.