Lantronix price target raised to $12 from $10.50 at Roth MKM

Roth MKM analyst Scott Searle raised the firm’s price target on Lantronix to $12 from $10.50 and keeps a Buy rating on the shares after its Q4 results. The company’s revenue topped estimates but gross margins were pressured by unfavorable mix led by greater edge compute and muted out-of-band solutions, the analyst tells investors in a research note. While Lantronix is guiding sequentially down revenue due to non-recurring in-flight entertainment sales however, the firm’s outlook for the second half of FY24 is “dramatically” better, Roth MKM added.