Alarm.com initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of Alarm.com with a Neutral rating and $64 price target. The company provides a cloud-based software-as-a-service platform and hardware equipment to 12,000 service providers who install, maintain, and monitor security systems for their end customers across residential and commercial properties, the analyst tells investors in a research note. The firm says competition from do-it-yourself security offerings, more modest growth in the domestic residential security business, and Alarm.com’s revenue concentration with large customers “increase the risk profile of the asset.” Goldman looks for more visibility into a growth re-acceleration path from here.