Roth Capital Remains a Hold on Alarmcom (ALRM)

By Carrie Williams

Roth Capital analyst Darren Aftahi maintained a Hold rating on Alarmcom (ALRMResearch Report) yesterday and set a price target of $55. The company’s shares closed yesterday at $50.52.

Aftahi said:

“We estimate core SAAS (ex-Other) grew ~14.7% y/y, roughly flat with 1Q levels. While encouraging on the margin, its 3Q SAAS guide implies further q/ q growth deceleration. With the stock having retrenched, we believe some of this deceleration risk is built into share price and will keep a watchful eye on any further deceleration (or perhaps a stabilization/reversal of this trend). On modestly better SAAS/better hardware revenue, and basically unchanged adj. EBITDA, we maintain our Neutral and $55 PT.”

According to TipRanks.com, Aftahi is a 5-star analyst with an average return of 13.8% and a 48.9% success rate. Aftahi covers the Technology sector, focusing on stocks such as Digital Turbine Inc, The Meet Group Inc, and Mitek Systems Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Alarmcom with a $67.67 average price target, implying a 33.9% upside from current levels. In a report released today, Jefferies also maintained a Hold rating on the stock with a $58 price target.

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Based on Alarmcom’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $9.01 million. In comparison, last year the company had a net profit of $10.73 million.

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Alarm.com Holdings, Inc. engages in the provision of wireless and web-enabled security system technology. The company offers security, video monitoring, and energy management solutions. It operates through the Alarm.com and Other segments. The Alarm.com segment represents cloud-based platform for the connected home and related connected home solutions.