Harmonic (HLIT) Valuation Check After New Czech Television Streaming Workflow Win

Harmonic (HLIT) just landed a meaningful showcase customer, as Czech Television moves its video streaming workflow onto Harmonic’s XOS Advanced Media Processor to gain tighter control, higher quality delivery and more inclusive viewing features.

See our latest analysis for Harmonic.

The deal lands at an interesting time for investors, with Harmonic’s share price at $9.97 and a 1 month share price return of 10.65 percent, contrasting with a weaker year to date share price return and softer 1 year total shareholder return. This suggests momentum may be tentatively rebuilding after a tougher stretch.

If this kind of rollout has you thinking about where else tech infrastructure is quietly reshaping media and communications, it could be worth scanning high growth tech and AI stocks for other potential beneficiaries.

But with the share price still well below this year’s highs and analysts seeing further upside, are investors looking at an overlooked value in a profitable niche player? Or is the market already pricing in Harmonic’s next leg of growth?

Most Popular Narrative Narrative: 15.4% Undervalued

With Harmonic last closing at $9.97 against a narrative fair value of about $11.79, the spread points to a meaningful upside story taking shape.

Strong order book and deferred revenue ($504.5 million), record rest of world broadband sales, and robust Video SaaS momentum (with new partnerships like Akamai and expansion with customers like ViewLift) all indicate building demand that is expected to convert into revenue and earnings growth over the coming quarters.

Read the complete narrative.

Curious how modest revenue expectations, expanding margins and a richer earnings multiple can still point to upside from here? See the full blueprint behind this valuation.

Result: Fair Value of $11.79 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, concentrated reliance on major customers like Comcast and the risk of renewed broadband CapEx delays could quickly undermine the emerging recovery narrative.

Find out about the key risks to this Harmonic narrative.

Build Your Own Harmonic Narrative

If you see the story differently or would rather test the numbers yourself, you can build a complete narrative in minutes: Do it your way.

A great starting point for your Harmonic research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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