NAPCO Earns Price Targets Bump By Analysts Following Upbeat Q4 Performance

Needham analyst James Ricchiuti maintained NAPCO Security Technologies, Inc NSSC with a Buy and raised the price target from $30 to $33.
NAPCO reported fourth-quarter FY22 net sales growth of 22% year-on-year to $43.2 million, beating the consensus. EPS of $0.20 beat the consensus.
NAPCO has begun FY23 with strong tailwinds across its business following a better-than-expected Q4’22 report.
While supply chain challenges will persist into CY23, demand remains strong in NAPCO’s intrusion/fire alarm system and school security businesses.
The company reported Q4’22 results, highlighted by a healthy upside to revenues, gross margins, adjusted EBITDA, and EPS.
Key takeaways from the print included continued strength in the recurring revenues business and a significant improvement in equipment gross margins.
Backlog remains elevated, with the supply chain, the gating factor holding NAPCO back from delivering even more robust growth.
He raised FY23 and FY24 estimates.
Canaccord Genuity analyst Michael Walkley reiterated NAPCO with a Buy and lifted the price target from $28 to $36.
Lake Street analyst Jaeson Schmidt reaffirmed NAPCO with a Buy and increased the price target from $23 to $32.
Price Action: NSSC shares traded higher by 4.74% at $29.81 on the last check Tuesday.

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