Netgear (NTGR) has disclosed a new risk, in the Corporate Activity and Growth category.
Netgear’s commitment to new business strategies, while aimed at maintaining competitiveness, introduces substantial risk. Diversifying into premium, high-margin products and services such as ProAV managed switches and Orbi WiFi systems necessitates considerable investment and carries the threat of management’s attention being diverted from existing operations. The potential for economic, legal, and regulatory hurdles, coupled with the risk of not achieving an adequate return on these ventures, looms over the company. Should these strategic investments falter, Netgear’s reputation, operational results, and financial stability could be severely compromised.
The average NTGR stock price target is $30.00, implying 104.92% upside potential.
To learn more about Netgear’s risk factors, click here.
