Litchfield Hills Research analyst Theodore O'Neill has maintained a Buy rating on Actelis Networks (Nasdaq: ASNS), setting a price target of $5 following the company's impressive 2024 financial performance. The technology firm achieved a 38% revenue increase to approximately $7.8 million and substantially improved its gross margin from 34% to 55%.
The financial results reflect Actelis' strategic pivot toward Internet of Things (IoT) sales and higher-margin software solutions. By reducing operating expenses by 13% year-over-year, the company has demonstrated disciplined financial management while maintaining focus on key markets including Federal, Military, and Smart City/Transportation sectors.
O'Neill's analysis suggests the company's stock is significantly undervalued, trading at an 85% to 93% discount compared to industry peers. If Actelis were to trade at the average peer valuation of 3.67x 2026 market cap/sales, the share price could potentially exceed $6.00, which is above the current price target.
The company's financial trajectory indicates a strategic repositioning that could attract investor attention. By improving operational efficiency and expanding into high-growth technology sectors, Actelis Networks is positioning itself for potential future market expansion and increased shareholder value.
