Wolfe Research Initiates Coverage on Harmonic Inc. (HLIT) with ‘Underperform’ Rating
Harmonic Inc. (NASDAQ:HLIT), having a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, ranks among the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.
On July 8, 2025, Wolfe Research initiated coverage on Harmonic Inc. (NASDAQ:HLIT) with a price target of $7 and an ‘Underperform’ rating. This comes ahead of the company’s earnings release for Q2, which is scheduled for July 28, 2025. The analyst’s price target implies a downtick from the company’s current share price of $9.10. However, several other analysts, such as Rosenblatt, Needham, and Barclays, have recently given bullish ratings on the company.
Despite a sluggish outlook, analysts project strong growth in 2025, where they project a revenue growth of 30.29%, taking the total expected revenue from $645.2 million in 2025 to $840.6 million in 2026. This growth is driven by Harmonic Inc. (NASDAQ:HLIT)’s strategic partnerships and technological innovation, as its recent deals with Vectra and Cignal TV demonstrate its growing global footprint in the realm of broadband and video streaming. Furthermore, its innovative PTP-less DAA deployment and cloud-native VOS360 platform are expected to bolster its competitive edge.
While there have been delays in the short-term rollouts, management remains optimistic. Looking ahead, the analysts expect an improved second half of 2025 and a strong 2026 performance, driven by strong demand amid the company’s collaboration with CUJO AI that will enhance broadband connectivity.
With the help of its software and SaaS platforms, Harmonic Inc. (NASDAQ:HLIT) offers cloud-based broadband and video solutions, serving operators and media companies by delivering high-speed internet and advanced streaming services. It is included in our list of the best cloud stocks.
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