Raymond James Upgrades Harmonic Stock to Strong Buy
Raymond James, a financial firm, has become more optimistic about Harmonic stock. They upgraded the broadband and video streaming company to a strong buy rating from outperform on Thursday, along with a price target of $16 per share. According to Raymond James’ forecast, this implies a potential upside of 58.1% from Wednesday’s closing price of $10.12. As a result of this news, Harmonic stock rose more than 8% during midday trading on Thursday. However, it is worth noting that the stock has experienced a decline of about 16% since the beginning of the year.
Harmonic’s Focus and Performance
Harmonic primarily focuses on providing broadband and video streaming solutions. Additionally, they offer video products that are utilized by cable, software, and network companies. So far this year, HLIT YTD mountain Harmonic stock has slipped more than 15%.
Rationale for the Upgrade
Raymond James analyst Simon Leopold justified the upgrade by stating that a more positive outlook on 2024 results influenced the decision. Leopold specifically highlighted the increased purchases from customers such as Comcast and Charter Communications. In fact, in March, Charter announced a strategic partnership with Harmonic to introduce cable modem termination systems for next-generation broadband services. Leopold estimates that Charter could potentially generate $100 million in revenue next year, considering its similarity in size to peer client Comcast.
Harmonic’s Reinvention and Future Outlook
Leopold described Harmonic as a reinvention story. Faced with the possibility of becoming irrelevant, the company shifted its focus towards software-oriented architectures that prioritize video delivery and next-generation broadband. With key reference accounts secured and a competitive advantage over legacy platform competitors, Leopold believes that Harmonic is well-positioned for success.
Note: Comcast owns , which is the parent company of HaberTusba.
Source: HaberTusba’s Michael Bloom contributed to this report.
