REZI Stock Forecast & Price Target

Resideo Technologies Inc. is poised for positive growth driven by the steady growth and margin expansion opportunities within its ADI Global Distribution segment, which is expected to benefit from mergers and acquisitions and an increased proportion of higher-margin proprietary products, currently approximating 17% of sales. The company reported a 5% year-over-year organic sales increase last quarter, with projections of approximately 4% growth in the third quarter of 2025, indicating sustained momentum in its operations. Furthermore, the separation of the ADI segment is anticipated to serve as an attractive catalyst supporting the company's overall business traction and financial performance.

Resideo Technologies Inc. faces significant risks that adversely impact its growth outlook, including unfavorable general economic conditions and heightened competition within its market segments. The company's struggle to evolve beyond its core business and potential regulatory shifts further compound these challenges, raising concerns about its long-term viability. Additionally, ongoing product performance issues may hinder the company's ability to maintain market share and customer satisfaction.