Netgear Inc: Rises on better-than-expected Q3 results, PT hike
22/10/2020 11:02
** Shares of network equipment maker NTGR.O up 2.38% at
$37.4 in premarket trading
** Company posts Q3 revenue and profit above Street
expectations urn:newsml:reuters.com:*:nASA019D4
** "Robust demand for wifi that reliably covers the entire
household continued in Q3 and signs point to this trend
continuing well into next year" -Patrick Lo, CEO
** Two brokerages Cowen & Co and Raymond James hike PT by $8
to $43, implying an upside of ~15% from last close
** Cowen says wifi 6 upgrade cycle appears to be ramping,
however, supply constraints appear to limit extent of upside
through at least mid-FY21; wifi 6 is the next generation
technology that offers greater speed and better connectivity
** Says pandemic-driven shift to work-from-home along with
expanded wifi 6 product portfolio is driving residential upgrade
cycle, which it expects to drive strong demand through FY22 and
beyond
** Two of 4 brokerages rate the stock "buy", and 2 "hold";
their median PT is $43 -Refinitiv Data
** Up to Wednesday's close, stock had risen ~49% YTD
(Reporting by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780;
outside U.S. +91 80 6749 3677;))