Adesto Technologies Corp (NASDAQ:IOTS) shares are in the bullish pattern over the last couple of quarters and analysts are predicting a strong upside in the days to come. Strong demand for Adesto’s products from consumer, industrial, automotive and communication markets, has strengthened analysts confidence in its future fundamentals.
Analyst Josh Nichols has given the price target of $10 for IOTS stock, higher from its current level of $7 at present. He said, “Adesto products are a perfect fit for energy-conscious applications, where low power consumption and processor performance requirements are designed into end-unit devices.”
B. Riley has set a “buy” rating for Adesto shares with the price target of $10.00, and Needham & Company LLC also see sharp upside in the coming days.
Source Image: finviz.com
IOTS shares jumped from$1.90 at the beginning of fiscal 2017 to $7 at present. The stock has the 52-week trading range of $3.71 – $9.20 with the market cap of $158 million. Despite sharp share price appreciation, its valuations are still in line with the market average, aided by substantial revenue and EBITDA growth.
IOTS shares trade around 2.45 times to sales and 4.5 times to book ratio, compared to the industry average of 2.13 and 3.08, respectively.
Financials Increased at Robust Rate
The remarkable year-over-year revenue growth of 31.0% in the latest quarter indicates strong demand for its application-specific, ultra-low power and smart non-volatile memory products. The company posted adjusted EBITDA of $1.3 million, compared to a loss of $0.1 million.
The impressive 85% Y/Y growth in the annual revenue run rate of its secured design wins in 2017 signifies the potential growth in 2018 and beyond. Adesto Technologies anticipates revenue increase in the range of 31.3% in first quarter, while cash on hand of $30 million enables the company to invest in growth opportunities.
The CEO expects substantial expansion in its end markets. He says, “We are seeing some new IoT and embedded applications coming to market that is benefitting from our low-power smart memory devices, including voice-activated home appliances, touch-sensors, asset trackers, smart lighting as well as health monitors.”
Featured Image: Twitter
