Netgear shares surge on FCC foreign-made router ban
24/03/2026 14:24
Updates, includes analyst commentary ** WiFi router and network equipment maker Netgear NTGR.O shares up 11.3% to $24.55 early Tues after U.S. Federal Communications Commission said on Mon it was banning the import of all new foreign-made consumer routers, citing national security concerns ** San Jose, California-based NTGR shares jump as much as 16.9% to $25.78, highest since Dec 11, and tracking biggest daily pct gain in seven months ** The regulator's move is latest crackdown on Chinese-made electronic gear. China estimated to control at least 60% of the U.S. market for home routers ** FCC's order doesn't impact import or use of existing models, and includes an exemption for routers the Pentagon deems don't pose unacceptable risks ** Stifel, which has a 'buy' rating on NTGR, said in a note that co is well positioned to navigate this regulatory shift as co doesn't manufacture in China ** While co's current manufacturing locations are foreign, Stifel adds that NTGR's "status as a U.S.-based firm with a transparent, non-adversarial supply chain makes conditional approval likely" ** With the move on Tues, shares flat YTD vs 6% decline in the Nasdaq .IXIC, and off ~33% from their 52-week intraday high of $36.86 from Oct 9 ** Of 4 analysts covering the stock, 3 rate "strong buy" or "buy", 1 "hold"; median PT $36, per LSEG data (Lance Tupper is a Reuters market analyst. The views expressed are his own) ((lance.tupper@tr.com 1-646-279-6380))