Technology
Management has brought back the goal of achieving double digit operating margin after three years of underperformance while turning the business around. Unlike prior years where NTGR was relying on unit volume growth to drive operating leverage, it now has a growing base of subscription revenue that is contributing to earnings. The forthcoming upgrade cycle along with improvements in FCF should revalue NTGR's stock towards Hamed Khorsand’s TP of $30 over the next twelve months (>100% upside).
Edition: 176
- 22 December, 2023