Updated Aug 16 at 11:55pm ET.
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Barclays raised its price target for the stock to $60 from $55 while keeping its rating at the equivalent of a hold. This is a small adjustment that suggests the firm sees the stock as fairly valued near its current price. While the target moved up, the firm is not yet changing its overall view on the company's prospects. These minor target tweaks are common after a company reports its quarterly numbers and do not usually signal a shift in the long-term outlook.
Source: Barclays
Raymond James raised its price target to $65 from $60 following a strong quarterly report. The new target is about 17 percent higher than the current stock price, reflecting more confidence in the company's growth path. This kind of target increase often follows a quarter where a company beats expectations and raises its own outlook for the year. It suggests the firm believes the business is executing well on its strategy to expand beyond residential security.
Source: Raymond James
Alarm.com reported earnings of $0.77 per share, which was well ahead of the $0.65 analysts expected. Total revenue grew about 9 percent to $277.7 million, also topping estimates. The most important part of the business, software and licensing fees, grew 11 percent to nearly $189 million.
This growth in software fees is the engine that drives the company's value. Because these are recurring monthly payments from homeowners and businesses, they provide a very steady and profitable stream of cash. Management felt confident enough in this momentum to raise its financial goals for the rest of the year, signaling that the expansion into commercial security and energy management is working.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Analysts recently raised their price targets following the company's latest earnings report. Most experts—13 of 19—rate the stock a buy, and the average target of $63 suggests a 12% gain from today's price.
Management has a perfect record of beating its own targets every single quarter for the last two years, which suggests they set a very conservative bar.
| Expectation | |
|---|---|
| EPS | $0.77 |
| Revenue | $266M |
