Update shared on04 Sep 2025
Analysts maintain a balanced view on A10 Networks, citing its strong margins, cash flow, and positioning for AI-driven security demand, but flagging competitive and upmarket challenges in cybersecurity; the consensus price target remains unchanged at $23.00.
Analyst Commentary
- Bullish analysts highlight A10's unique position as an SMID-cap with a differentiated product mix, featuring high-single digit revenue growth and industry-leading gross and EBITDA margins.
- The ability to generate robust free cash flow supports ongoing share buybacks and dividend initiatives, considered unusual for a company of A10's size.
- A10 is perceived as well-positioned to benefit from rising demand for security and analytics related to AI services and infrastructure.
- Bearish analysts note that intense competition in the cybersecurity sector may hinder A10’s growth prospects.
- Pressure in the service provider segment and potential challenges with moving upmarket are seen as key risks for future performance.
What's in the News
- A10 Networks completed a $3.94 million share repurchase of 229,000 shares, representing 0.32% of the company, under the buyback initiated in May.
- The company was added to multiple Russell Value Indexes, including Russell 2000, 2500, 3000, Microcap, and related benchmarks.
- A10 Networks' relationship with Turkcell deepened, supporting virtualization of Turkcell's network infrastructure using A10's carrier-grade solutions, improving scalability, efficiency, and network security while enabling IPv4/IPv6 transition.
- Microsoft selected A10 Networks to secure mission-critical generative AI workloads, leveraging A10's advanced threat detection and mitigation for hyperscale AI deployments.
Valuation Changes
Summary of Valuation Changes for A10 Networks
- The Consensus Analyst Price Target remained effectively unchanged, at $23.00.
- The Net Profit Margin for A10 Networks remained effectively unchanged, at 21.30%.
- The Discount Rate for A10 Networks remained effectively unchanged, at 8.95%.
Disclaimer
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