The study and recommendation included quotations from Netgear

Network solutions provider Netgear Inc. (NTGR) has published a substantial report and received a positive recommendation from investment research firm BWS Financial was the reason for the growth of NTGR quotes by 22.57% to $24.87 at the auction on July 28. In the quarter that ended July 3, Netgear’s revenue decreased by 27.7% year-on-year to $223.2 million. The reduction is because the company is at the stage of transformation and refuses to sell mass but cheap routers. In addition, this year, the comparison is with record sales of equipment bought during the COVID-19 period for remote work organizations. 

Netgear’s goal is to increase profitability, and in the second quarter, the loss decreased to $0.3 per diluted share. The company repurchased $15 million worth of shares, and Netgear focused on providing sustainable supplies for premium devices and 5G mobile access points. These solutions show double-digit sales growth, and Netgear management expects this dynamic to continue until the end of 2022. A strong positive signal is the growth of the Netgear services business. By the end of the quarter, he already had 654 thousand subscribers, and the company is on track to achieve its goal of 750 thousand subscribers by the end of 2022. 

For now, there is uncertainty about supply chain problems for Netgear. The company believes the situation will improve but is still cautious in the forecast. Netgear expects $240—$255 million in the third quarter. Hamed Khorsand, an analyst at BWS Financial, believes that Netgear’s business renewal has reached a turning point; the company, in 2023, can accelerate growth thanks to the launch of the new Wi-Fi 7 standard. Against this background, BWS Financial raised its recommendation on Netgear shares from neutral to “buy” with a target price of $30. 


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