Update shared on03 Oct 2025
Fair value Increased 4.26%Analysts have raised their fair value estimate for Harmonic from $10.07 to $10.50. This change reflects improved sentiment after headwinds in the company's results were seen to have eased.
Analyst Commentary
Recent analyst updates reflect a mix of optimism and caution regarding Harmonic's outlook, valuation, and business execution.
Bullish Takeaways
- Bullish analysts have increased their price targets, citing lifted industry headwinds and signs of improved sector dynamics.
- The easing of challenges that impacted results in the first half of the year has led to improved sentiment about Harmonic's growth potential.
- Attendance at major industry events has reinforced confidence in a more favorable operating environment in the future.
- Some believe that Harmonic's valuation still offers upside as the company addresses previous concerns and its fundamentals stabilize.
Bearish Takeaways
- Bearish analysts point to ongoing weakness in cable upgrade spending, which remains subdued and could limit near-term growth.
- The company's reliance on key clients whose investment plans are currently on hold is seen as a risk to sustained execution and earnings momentum.
- Some research coverage has initiated with a cautious outlook, signaling concerns about longer-term competitive positioning in the market.
What's in the News
- Harmonic and Comcast are collaborating to expand fiber broadband access to over one million new locations in 2024 and another 1.2 million by the end of 2025. They are utilizing Harmonic's cOS virtualized broadband platform to deliver multi-gigabit symmetrical broadband and support cost-effective rural fiber rollouts (Key Developments).
- At SCTE TechExpo25, Harmonic and Mediacom will demonstrate a production deployment of DOCSIS 4.0 technology. This deployment delivers symmetric multi-gigabit speeds to real-world customers and showcases readiness for broad field deployment (Key Developments).
- ATX Networks, Harmonic and Hitron have enabled the first successful DOCSIS 4.0 customer deployment in Mediacom's Moline, Illinois system. This validates the potential for operators to deliver symmetrical multi-gigabit internet over existing hybrid-fiber coaxial networks (Key Developments).
- Harmonic announced that German broadband operator neu-medianet is deploying XGS-PON fiber broadband services using its cOS platform, enhancing network capabilities for high-speed and future-ready broadband (Key Developments).
- SKY Perfect JSAT Corporation in Japan has partnered with Harmonic to modernize broadcast playout and delivery workflow. They are leveraging Harmonic's cloud-native XOS Advanced Media Processor to improve operational efficiency and video quality (Key Developments).
Valuation Changes
- The Fair Value Estimate has increased slightly from $10.07 to $10.50, reflecting an improved outlook.
- The Discount Rate has fallen modestly from 8.45% to 8.41%, indicating a marginally lower risk assessment.
- The Revenue Growth projection remains largely unchanged at 31.08%, signaling consistent expectations for top-line expansion.
- The Net Profit Margin estimate is stable at approximately 10.14%, with no meaningful change in profitability assumptions.
- The Future P/E (Price-to-Earnings) ratio has risen from 19.12x to 19.91x, implying a modestly higher valuation multiple placed on future earnings.
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.