Roth Capital's analyst Scott Searle has adjusted the price target for Ceragon Networks (CRNT, Financial), reducing it from $5 to $4 while maintaining a Buy rating on the stock. The revision reflects ongoing challenges in the Indian market, which are exerting pressure on the company's expectations for the latter half of 2025, anticipated to be heavily weighted towards the end of the year. Despite these headwinds, the analyst notes that Ceragon's stock valuation remains at its lowest levels.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Ceragon Networks Ltd (CRNT, Financial) is $6.13 with a high estimate of $10.00 and a low estimate of $4.50. The average target implies an upside of 156.28% from the current price of $2.39. More detailed estimate data can be found on the Ceragon Networks Ltd (CRNT) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Ceragon Networks Ltd's (CRNT, Financial) average brokerage recommendation is currently 2.0, 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 Ceragon Networks Ltd (CRNT, Financial) in one year is $2.77, suggesting a upside of 15.9% from the current price of $2.39. 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 Ceragon Networks Ltd (CRNT) Summary page.
CRNT Key Business Developments
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ceragon Networks Ltd (CRNT, Financial) reported the highest booking levels since Q1 2024, indicating strong demand.
- Revenue in India increased by 65% year over year, demonstrating significant growth in this key market.
- The acquisition of E2E Technologies is expected to be accretive to non-GAAP earnings by the second half of 2025.
- Ceragon Networks Ltd (CRNT) is strategically aligned for long-term success in the evolving wireless connectivity landscape, with strong anticipated demand for microwave and millimeter wave products.
- The company is actively exploring additional strategic M&A opportunities to expand in high-growth areas for wireless connectivity.
Negative Points
- Gross profit on a non-GAAP basis decreased by 8.6% from Q1 2024, with a decline in gross margin from 36.7% to 33.5%.
- The net cash position decreased from $10.1 million at the end of 2024 to $2.5 million, largely due to the acquisition of E2E.
- Restructuring and related charges increased to $3.7 million in Q1 2025 from $1.4 million in Q1 2024.
- Non-GAAP net income decreased to $2.6 million or $0.03 per diluted share from $4.7 million or $0.05 per diluted share in Q1 2024.
- The company faces potential instability due to tariff dynamics, particularly affecting private network customers.
