Alarm.com Price Target Cut 11% to $50 After Q4 Beat
On February 20, Barclays lowered Alarm.com’s 12-month price target by $6 to $50 while maintaining an Equal Weight rating after the company beat fourth-quarter revenue and EPS estimates. The analyst cited a less optimistic margin outlook in its updated financial model.
1. Barclays Cuts Price Target to $50
On February 20, Barclays lowered the 12-month price target for Alarm.com to $50 from $56 while maintaining an Equal Weight rating, citing a less optimistic margin outlook in its updated financial model after the latest earnings.
2. Strong Quarterly Results
Alarm.com posted fourth-quarter revenue of $261.7 million, exceeding the $250.75 million consensus, and reported adjusted EPS of $0.72 versus the $0.64 estimate.
3. Fiscal 2026 Guidance
The company guided fiscal 2026 revenue to a range of $1.058 billion to $1.065 billion, topping the earlier consensus forecast of $1.04 billion.
4. Broader Analyst Views and Sector Outlook
JPMorgan also cut its price target to $40 from $55 and maintained an Underweight rating, highlighting AI deployment challenges in the software sector, as Alarm.com expands into AI-driven video analytics and energy management solutions.