Goldman Sachs Starts Alarm.com (ALRM) at Neutral

Goldman Sachs analyst Adam Hotchkiss initiates coverage on Alarm.com (NASDAQ: ALRM) with a Neutral rating and a price target of $64.00.

The analyst comments: "Alarm.com provides a cloud-based SaaS platform and hardware equipment to ~12k service providers (channel partners) who install, maintain, and monitor security systems for their end customers across residential and commercial properties. Alarm.com's focus on developing industry leading innovative solutions, combined with technical expertise and a robust operating history, continues to drive its leadership position in a North American residential security market that is increasingly demanding more sophisticated technological solutions (i.e. video, AI). In addition, the company is investing significantly in diversifying its business through expanding in the commercial end market, through energy management solutions, and internationally, which together make up ~25% of the SaaS business today and grow significantly faster than the North American residential business. That said, competition from DIY security offerings, more modest growth in the domestic residential security business, and revenue concentration with large customers increase the risk profile of the asset."

For an analyst ratings summary and ratings history on Alarm.com click here. For more ratings news on Alarm.com click here.

Shares of Alarm.com closed at $57.88 yesterday.

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