Update shared on 15 Nov 2025
Fair value Decreased 48%Sequans Communications' analyst price target has been lowered significantly from $41 to approximately $21.33. Analysts cite weaker-than-expected third quarter sales, ongoing supply chain challenges, and the company's evolving strategies as primary factors driving the revision.
Analyst Commentary
Analyst reactions to Sequans Communications' recent performance and outlook have been mixed, highlighting both opportunities and challenges facing the company. The following summarizes their key perspectives on the firm's valuation, strategy, and execution.
Bullish Takeaways
- Bullish analysts continue to see upside in Sequans shares and maintain Buy ratings, even though they have recently lowered their price targets.
- Analysts are optimistic about a sales rebound in the fourth quarter. They anticipate recovery as the company benefits from multiple design wins over the next three years.
- The company’s strategy to redeem bitcoin holdings to fund share buybacks is viewed as a shareholder-friendly move that could support valuation.
- Initiations of coverage with positive outlooks suggest confidence in Sequans' growth prospects, despite near-term headwinds.
Bearish Takeaways
- Bearish analysts cite weaker-than-expected third quarter sales, primarily attributed to project timing and challenges with substrate and OSAT (outsourced semiconductor assembly and test) availability.
- Ongoing supply chain constraints are identified as a continuing risk to near-term execution and growth targets.
- Lack of broader market recognition for Sequans' bitcoin strategy is seen as a factor affecting sentiment and short-term valuation.
- The substantial reduction in price targets reflects tempered expectations for near-term revenue growth and operational momentum.
What's in the News
- Sequans Communications S.A. announced a 1-for-10 stock split or significant stock dividend. This is scheduled for September 17, 2025 (Key Developments).
- The company has filed a follow-on equity offering totaling $200 million, including an at-the-market offering of American Depositary Shares (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has fallen significantly from $41 to approximately $21.33.
- The discount rate has risen moderately, moving from 11.27% to 13.46%.
- Revenue growth has increased slightly from 22.8% to 24.9%.
- Net profit margin has grown modestly, shifting from 13.7% to 14.6%.
- Future P/E has risen sharply from 11.9x to 65.9x. This suggests higher valuation expectations relative to projected earnings.
Disclaimer
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