Radcom Ltd RDCM saw a surge in early trading on Thursday.
According to Needham, the Paramus, New Jersey-based company is playing a pivotal role in addressing technical obstacles that hinder the smooth transition to 5G.
Alex Henderson, an analyst covering Radcom, recently upgraded the company’s rating from Hold to Buy and set a price target of $8.50.
Henderson highlighted that Radcom has experienced consistent growth, expanding its gross and operating margins while diversifying its product portfolio, extending its sales reach, and attracting new clients.
“Radcom has transformed from incurring a loss of $0.23/share to achieving profitability of more than $0.50 over the past three years,” the analyst wrote.
“Radcom anticipates strong growth and improving margins in CY24,” added Henderson. “We believe the company has solid grounds for a surge once the Telco sector recovers and 5G initiatives progress,” he continued.
Shares of Radcom had climbed 5.76% to $9.00 at the time of publication on Thursday.
Image: Courtesy of Radcom
