Rosenblatt Upgrades NETGEAR (NTGR) Two-Notches to Buy

Rosenblatt upgraded NETGEAR (NASDAQ: NTGR) from Sell to Buy with a price target of $47.00 on strong retail fundamentals.

Analyst Kirk Adams commented, "We are upgrading the shares of Netgear from SELL to BUY today, driven by the excellent fundamentals in the retail business and the stabilization of the service provider business. These improvements in sales and margins, plus their aggressive return of capital to shareholders by way of stock buybacks leads us to believe they can generate around $2.54 in non-GAAP earnings in FY2016. A P/E of 18.5 gives us a target price of $47. We did not anticipate such a strong rebound in retail and the tremendous uptake of both their higherpriced Arlo and Nighthawk product lines. These new products are driving both higher ASP’s and higher revenues. Additionally, we thought it would take them much longer to downsize their service provider business to focus on higher margin business. We were wrong."

For an analyst ratings summary and ratings history on NETGEAR click here. For more ratings news on NETGEAR click here.

Shares of NETGEAR closed at $39.93 yesterday.

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