Aviat Networks (AVNW) Stock Forecast & Price Target

Aviat Networks Inc demonstrated significant financial growth, with North American revenues rising nearly 40% sequentially to $58 million, which constituted 49% of the total revenue, while international revenues also saw a 30% sequential increase. The company reported gross margins of 35.3% for FQ225, exceeding expectations due to a favorable revenue mix and momentum in private networks, coupled with anticipated improvements as manufacturing transitions continue. Furthermore, the ongoing demand for 5G infrastructure and broadband access is expected to support sustained revenue growth and enhanced margins, highlighting a positive outlook for the company's performance.

Aviat Networks Inc. is experiencing a downturn reflected in its financial outlook for FY25, with a significant downward revision in both sales and adjusted EBITDA guidance due to disappointing first-quarter results. The company's reliance on major Tier 1 operators, particularly Verizon, has led to expectations of mid-teens organic revenue declines year-over-year, exacerbated by delays in project timelines and previously missed filings. Furthermore, despite an overall double-digit sales CAGR since early 2020, the stock trades at less than 1.0x CY24E EV/sales, indicating concerns about sustained growth in a challenging wireless market environment.