A10 Networks (ATEN, Financial) has been chosen by Microsoft to bolster the security of essential AI workloads. This achievement underscores A10's expertise in enhancing protection for AI-optimized systems. In this collaboration, A10 will provide sophisticated threat detection and mitigation services specifically designed for large-scale AI environments.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for A10 Networks Inc (ATEN, Financial) is $22.50 with a high estimate of $24.00 and a low estimate of $20.00. The average target implies an upside of 19.05% from the current price of $18.90. More detailed estimate data can be found on the A10 Networks Inc (ATEN) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, A10 Networks Inc's (ATEN, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for A10 Networks Inc (ATEN, Financial) in one year is $16.42, suggesting a downside of 13.12% from the current price of $18.9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the A10 Networks Inc (ATEN) Summary page.
ATEN Key Business Developments
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- A10 Networks Inc (ATEN, Financial) reported a 9% year-over-year revenue growth, indicating strong performance.
- Enterprise revenue grew by 18%, showcasing significant expansion in this segment.
- The company has a strong balance sheet with $355.8 million in cash equivalents and marketable securities.
- A10 Networks Inc (ATEN) completed the acquisition of ThreadX Protect, enhancing its cybersecurity portfolio.
- The company is well-positioned to benefit from the rise of AI, providing efficient solutions for data center capacity and security.
Negative Points
- Service provider revenue only increased by 3%, indicating slower growth in this segment compared to enterprise.
- There is ongoing market volatility and uncertainty due to factors like tariffs and trade policy dynamics.
- The company faces challenges with order timing due to evolving market conditions and higher interest rates.
- A10 Networks Inc (ATEN) experiences quarter-to-quarter volatility in the service provider sector.
- Sales and marketing expenses were down, which may indicate cost management challenges or reduced investment in these areas.
