Roth Capital analyst Darren Aftahi maintained a Buy rating on Alarmcom (ALRM) yesterday and set a price target of $61. The company’s shares closed yesterday at $47.25.
Aftahi wrote:
“We believe implied marketing cost seems heavy in 4Q and that adj. EBITDA could outperform to the upside given its revenue guide. We improve our model and with it our PT to $61. What to do with the stock? 4Q18 guidance implies adj. EBITDA margins decline to ~19% (at the midpoint), down ~300bps q/q and ~600bps y/y, which we believe could suggest EBITDA guidance (and revenue) could once again be conservative. With hardware declining q/q, on balance, gross margins should improve and as a result, should flow through into profits. ALRM underspent our 3Q marketing estimates by ~$2.5M and the implied 4Q ramp seems heavy, and un-seen in historical trends. We believe 4Q is likely to outperform, while new products should aid ARPU and SaaS revenue in 2019. Overall, we remain opportunistic buyers of shares.”
According to TipRanks.com, Aftahi is a 5-star analyst with an average return of 10.0% and a 51.1% success rate. Aftahi covers the Technology sector, focusing on stocks such as Digital Turbine Inc, The Meet Group Inc, and Mitek Systems Inc.
Currently, the analyst consensus on Alarmcom is a Strong Buy with an average price target of $61, implying a 29.1% upside from current levels. In a report released today, Jefferies also maintained a Buy rating on the stock with a $60 price target.
.
See today’s analyst top recommended stocks >>
The company has a one-year high of $60.20 and a one-year low of $33.39. Currently, Alarmcom has an average volume of 585.7K.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is negative on the stock.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Alarm.com Holdings, Inc. engages in the provision of wireless and web-enabled security system technology. The company offers security, video monitoring, and energy management solutions. It operates through the Alarm.com and Other segments. The Alarm.com segment represents cloud-based platform for the connected home and related connected home solutions.
