Evaluating Harmonic: Insights From 4 Financial Analysts

Across the recent three months, 4 analysts have shared their insights on Harmonic HLIT, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $18.0, along with a high estimate of $18.00 and a low estimate of $18.00. Holding firm without variation, the current average remains at the previous average price target.

Deciphering Analyst Ratings: An In-Depth Analysis

The analysis of recent analyst actions sheds light on the perception of Harmonic by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Harmonic. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Harmonic compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Harmonic's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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All You Need to Know About Harmonic

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.

Understanding the Numbers: Harmonic's Finances

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.

Revenue Challenges: Harmonic's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -22.57%. This indicates 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 a standout performer, exceeding industry averages. With an impressive net margin of -6.63%, the company showcases strong profitability and 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 -1.91%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Harmonic's ROA stands out, surpassing industry averages. With an impressive ROA of -1.07%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Harmonic's debt-to-equity ratio is below the industry average at 0.38, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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