In a report published on Friday, Wedbush analyst Rohit Chopra upgraded Netgear NTGR from Neutral to Outperform and raised the price target on the company from $32 to $38.
In the report, Wedbush stated, "We are not making a call on the upcoming quarter, but believe that the key negative issues are priced in, and 12-Month Price Target that there are catalysts in 2H, which could drive improving fundamentals. Our upgrade is predicated on our belief (1) that the retail business could see improvement as 802.11ac endpoints proliferate the market later in the year driving new router sales; (2) commercial supply chain issues in storage which negatively impacted Q1, have been largely resolved and, combined with the release of several new products could drive improvement later in the year; and (3) SP business could remain flattish this year, despite a number of RFPs that are in process, but more importantly, this business is less relevant to earnings than investors believe compared to retail and commercial."
Netgear closed on Thursday at $31.78.
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