
NSSC Stock Forecast & Price Target
NSSC Analyst Ratings
Bulls say
NAPCO Security Technologies Inc has revised its organic sales growth projection for equipment upward to 11%-12%, reflecting an approximate 500 basis point increase from previous estimates, indicating stronger volume growth expectations. Additionally, the company has effectively implemented an 8.5% tariff-related price increase along with a 5% catalog adjustment, suggesting resilience in its pricing strategy within the market. The operational advantages anticipated from the Dominican Republic manufacturing plant, poised to deliver significant operating leverage, support the elevated gross margin assumption for equipment, now estimated at nearly 26.5%.
Bears say
NAPCO Security Technologies Inc. is facing financial challenges that warrant a negative outlook, primarily due to significant restatements of its first three quarters for fiscal 2023, highlighting both understated COGS and overvalued inventory. The company is embroiled in potential litigation related to these accounting issues, which could further strain its financial position and distract from core operations. Additionally, NAPCO's dependence on maintaining distributor partnerships in a highly competitive market presents a risk to its sales capabilities, exacerbated by recent weaknesses in internal accounting controls that may hinder its strategic shift towards increasing recurring revenue streams.
This aggregate rating is based on analysts' research of NAPCO Security Technologies and is not a guaranteed prediction by Public.com or investment advice.
NSSC Analyst Forecast & Price Prediction
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