Harmonic Secures Buy Ratings as Analysts Boost Price Targets

Harmonic (NASDAQ: HLIT) has received renewed confidence from analysts, with multiple firms reiterating or upgrading their ratings on the communications equipment provider. On October 8, 2023, Rosenblatt Securities restated their “Buy” rating, setting a price target of $14.00 per share. This comes as part of a broader trend in which other analysts have also expressed bullish sentiments about the company’s stock.

In a report released on the same day, Needham & Company LLC reaffirmed a “Buy” rating and issued a target price of $15.00. Meanwhile, Barclays upgraded its price target from $8.00 to $11.00, assigning an “equal weight” rating. The consensus among analysts shows three rating “Buy,” three as “Hold,” and one as “Sell,” with MarketBeat data indicating an average price target of $13.13 for the stock.

Investors reacted positively, with HLIT opening at $10.45 on Tuesday. The company’s financial metrics include a quick ratio of 1.64, a current ratio of 2.08, and a debt-to-equity ratio of 0.27. Over the past year, Harmonic has seen its stock range from a low of $7.80 to a high of $13.75.

Recent Earnings Performance

On November 3, 2023, Harmonic released its quarterly earnings report, revealing an earnings per share (EPS) of $0.12, surpassing analysts’ expectations of $0.05 by $0.07. The company reported revenues of $142.38 million, which exceeded analyst estimates of $127.94 million. Despite this positive performance, the quarterly revenue marked a decline of 27.3% compared to the same quarter last year, when the company earned $0.26 EPS.

Looking ahead, Harmonic has set its guidance for the fourth quarter of 2025 at an EPS range of $0.060 to $0.120. Analysts forecast an average EPS of $0.31 for the current fiscal year.

Institutional Investment Trends

Recent activity among institutional investors indicates a growing interest in Harmonic. Amalgamated Bank increased its stake by 3.5% during the third quarter, now holding 33,186 shares valued at $338,000. Similarly, PNC Financial Services Group Inc. raised its position by 7.4%, bringing its total to 16,926 shares valued at $172,000.

Other notable investments include CWM LLC, which grew its stake by 5.1%, and Cresset Asset Management LLC, which increased its holdings by 16.5%. Currently, institutional investors collectively own 99.38% of Harmonic’s stock, reflecting significant confidence in the company’s future performance.

As Harmonic continues to navigate the competitive landscape of broadband solutions, analysts and investors alike will be watching closely to see how the company capitalizes on its recent momentum.