Breaking Down Harmonic: 5 Analysts Share Their Views

5 analysts have expressed a variety of opinions on Harmonic HLIT over the past quarter, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $18.4, along with a high estimate of $19.00 and a low estimate of $18.00. This current average reflects an increase of 12.68% from the previous average price target of $16.33.

Exploring Analyst Ratings: An In-Depth Overview

A comprehensive examination of how financial experts perceive Harmonic is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Harmonic. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Harmonic compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Harmonic's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Harmonic's market position. Stay informed and make well-informed decisions with our Ratings Table.

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Discovering Harmonic: A Closer Look

Harmonic Inc designs and manufactures video infrastructure products and system solutions to deliver video and broadband services to consumer devices. The firm operates in two segments: Video, which sells video processing, production, and playout solutions to cable operators and satellite and telecommunications providers; and Broadband which sells broadband access solutions and related services. Majority of the revenue generated from the company is from United States.

Harmonic: A Financial Overview

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Harmonic's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -18.32% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -5.11%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Harmonic's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -1.9%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Harmonic's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.95%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Harmonic's debt-to-equity ratio is below the industry average at 0.46, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.