William Blair analyst Stephen Sheldon has maintained their neutral stance on ALRM stock, giving a Hold rating today.
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Stephen Sheldon has given his Hold rating due to a combination of factors including Alarm’s recent financial performance and future projections. The company reported strong third-quarter results, with revenue and adjusted EBITDA surpassing estimates. However, the growth in hardware revenue was flat, and future projections suggest modest growth rates.
Management has slightly raised its guidance for 2025, indicating confidence in achieving $1 billion in revenue and improved adjusted EPS. Despite these positive indicators, the preliminary expectations for 2026 show only modest growth, with revenue expected to grow by around 4% and adjusted EBITDA margins remaining stable. Additionally, there are potential headwinds from the transition of ADT to Google, which could impact future revenue. These mixed signals contribute to the Hold rating, as the stock may not present significant upside potential in the near term.
In another report released today, Barclays also maintained a Hold rating on the stock with a $56.00 price target.