On Wednesday, Peraso, Inc. (NASDAQ: PRSO) maintained its Speculative Buy rating and $4.00 stock price target, following the company's positive pre-announced second-quarter results. The updated revenue estimate of approximately $4.2 million represents a 12% increase over the previous $3.75 million midpoint forecast.
This improvement is attributed to higher-than-expected shipments of memory end-of-life products and the successful ramp-up of DUNE modules, which are part of a new production order from a South African service provider.
The company's performance exceeded prior expectations, with the initial rollout of the DUNE (dense urban network environment) solution highlighting customer growth in the millimeter-wave (mmWave) space.
Peraso's engagement pipeline has seen significant growth, now featuring 94 potential customers, including 14 in the hardware evaluation phase and seven in engineering design. This expansion points to a potential increase in customer conversions over the coming quarters.
The analyst from Benchmark expressed satisfaction with Peraso's progress and the promising start for the DUNE solution. The interest in fixed wireless access (FWA) is expected to continue rising globally, which could translate into further positive developments for the company. With the inventory digestion phase nearing its end and mmWave demand strengthening, Peraso's market position appears to be solidifying.
Peraso's stock retains its positive outlook based on the anticipation of more customer engagements transitioning from the pipeline to actual sales. The company's focus on mmWave technology for FWA solutions seems to be aligning well with market demand, positioning it for potential growth as the sector expands.
Investors and market watchers will likely continue monitoring Peraso's customer pipeline and the adoption rate of its DUNE modules, as these factors could be critical in determining the company's future revenue streams and market share within the FWA market.
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