A Look at Harmonic's (HLIT) Valuation Following Telia’s Major Broadband Platform Upgrade

Harmonic (HLIT) revealed that Telia is upgrading its broadband infrastructure with Harmonic's cOS platform. The aim is to boost speed, reliability, and operational efficiency for its network customers. This move highlights new opportunities for Harmonic’s business growth.

See our latest analysis for Harmonic.

Following the Telia win, Harmonic’s recent news is set against a backdrop of mixed momentum. The share price return over the past month is down 12%, extending a year-to-date slide of 28%. The total shareholder return over one year sits at -27%. Still, Harmonic’s five-year total shareholder return of nearly 30% shows the company has long-term growth under its belt.

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With shares still well below analysts’ targets and revenue steadily climbing, is Harmonic trading at a bargain for investors seeking growth, or is the market already factoring in all of the company’s future potential?

Most Popular Narrative: 20% Undervalued

Harmonic’s narrative fair value estimate stands at $11.79, about 20% above the last close of $9.41. This difference reflects confidence in near-term catalysts and future growth drivers that analysts see for the business today.

Accelerating global demand for high-speed broadband and the ongoing transformation to next-generation virtualized broadband networks (including Fiber-to-the-Home and Unified DOCSIS 4.0) are driving a multi-year upgrade cycle among operators. Harmonic's leadership and recent customer wins in these areas signal a strong pipeline and are likely to fuel significant future revenue growth as operators ramp deployments in 2026 and beyond.

Read the complete narrative.

Want to see what underpins this bullish outlook? The fair value hinges on forecasts for revenue transformation, higher profit margins, and a future profit multiple not typical for the sector. Uncover the detailed numbers and bold trajectories that set this narrative apart from the market’s view.

Result: Fair Value of $11.79 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Harmonic’s heavy reliance on major clients and rapid technology changes remain potential risks that could quickly shift its growth outlook.

Find out about the key risks to this Harmonic narrative.

Build Your Own Harmonic Narrative

If you want to dig into the numbers yourself or craft a different perspective, you can easily build your own narrative in just a few minutes. Do it your way

A great starting point for your Harmonic research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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