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SQNS: Share Buybacks And Expanding Design Wins Will Drive Q4 Recovery

SQNS: Recent Bitcoin Treasury Initiative Will Drive Long-Term Shareholder Value

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SQNS
AnalystConsensusTarget
Not Invested
Published 11 May 2025

Update shared on 29 Nov 2025

Fair value Decreased 3.12%
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AnalystConsensusTarget's Fair Value
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-81.4%
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-18.4%

Analysts have lowered their price target for Sequans Communications from $21.33 to $20.67, citing near-term sales headwinds. However, they maintain a positive view on future design wins and an improving revenue growth outlook.

Analyst Commentary

Analysts continue to weigh both positive and negative factors as they update their outlook for Sequans Communications. These viewpoints highlight critical elements affecting the company's valuation, execution, and growth trajectory.

Bullish Takeaways

  • Analysts remain positive on the company's expanding pipeline of design wins over the next three years. This development could drive improved long-term revenue growth.
  • Valuation is considered attractive by optimistic analysts. They see the current pullback in the share price as an opportunity for potential upside as sales recover.
  • Analysts believe that near-term sales headwinds are likely to be temporary. They expect a rebound in the next quarter due to better project timing and component availability.
  • Some note that strategic initiatives such as redeeming bitcoin holdings for share buybacks could further enhance shareholder value.

Bearish Takeaways

  • Bears are concerned about the recent miss on quarterly sales, attributing it partly to project delays and supply chain challenges that may persist in the near term.
  • There is caution around the lack of broader market recognition for some of Sequans' strategic initiatives. This could limit near-term investor enthusiasm.
  • Price targets have been adjusted downward to reflect uncertainty regarding the pace of execution and recovery in upcoming quarters.

What's in the News

  • Sequans Communications announced a 1-for-10 stock split or significant stock dividend. This event is scheduled for September 17, 2025 (Key Developments).

Valuation Changes

  • Consensus Analyst Price Target has decreased from $21.33 to $20.67, reflecting a modest downgrade.
  • Discount Rate remains largely unchanged at 13.46%.
  • Revenue Growth projection has increased significantly, rising from 24.90% to 38.13%.
  • Net Profit Margin is up slightly from 14.61% to 14.73%.
  • Future P/E ratio has declined substantially, moving from 65.94x to 46.84x.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.