Peraso stock rating reiterated by Benchmark on fixed wireless growth

Investing.com - Benchmark reiterated its Buy rating and $3.00 price target on Peraso, Inc. (NASDAQ:PRSO) on Monday, citing strengthening adoption in fixed wireless applications. The stock has shown impressive momentum with a nearly 29% gain over the past six months. According to InvestingPro data, analysts have set price targets ranging from $3.00 to $3.62, suggesting significant upside potential from current levels.

The research firm pointed to healthy momentum developing across multiple applications, particularly in tactical communications, as inventory headwinds have eased. Peraso's largest customer has resumed placing new orders following several quarters of inventory digestion that had previously masked improving demand trends. InvestingPro analysis reveals the company maintains a strong financial position, holding more cash than debt on its balance sheet, with a healthy current ratio of 2.01x.

Benchmark highlighted that initial shipments of Peraso's next-generation 60 GHz platform began last week to a major military defense contractor, following a contract award earlier this quarter. The firm views the rapid progression from engagement to shipment as significant validation of Peraso's technology, especially given the demanding defense performance requirements.

The military contract is expected to serve as a catalyst for further expansion in the defense market and adjacent high-growth verticals where secure, high-bandwidth wireless links are essential, according to Benchmark's analysis.

Peraso's position as one of the few companies offering solutions in this space is helping it gain traction, with a strong design win pipeline and expanding fixed wireless access deployment opportunities, the research firm noted. InvestingPro subscribers can access 9 additional exclusive ProTips and a comprehensive Pro Research Report that provides deep-dive analysis of Peraso's market position and growth potential among 1,400+ top US stocks.

In other recent news, Peraso Inc. reported its financial results for the first quarter of 2025, revealing a notable increase in revenue to $3.9 million, up from $3.7 million in the previous quarter and $2.8 million in the same period last year. Despite reporting a GAAP net loss of $500,000, the company showed improvements in its gross margin, which rose to 69.3% from 56.3% in the prior quarter. Millimeter wave product revenues surged to $1.5 million, reflecting strong growth in this segment. Additionally, Peraso regained compliance with Nasdaq's minimum bid price requirement, as its stock maintained a closing bid price above the $1.00 threshold for ten consecutive trading days. The company also anticipates continued growth in its millimeter wave revenues throughout 2025, with Q2 net revenue expected to range between $1.8 million and $2.0 million. Recent strategic advancements include a new contract with a defense contractor, opening significant revenue opportunities in military and defense applications. Analysts from firms like Benchmark have noted the company's strong start to the year, with expectations of sequential revenue growth driven by existing backlogs and new orders.

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