B.Riley initiated coverage on Sequans Communications (NYSE:SQNS) with a Buy rating and a $13.00 price target, highlighting the company's significant undervaluation despite its hybrid semiconductor and Bitcoin treasury business model. The firm notes Sequans trades at 0.7 times modified net asset value, below peers, and projects an improvement to 1.2 times mNAV within 12 months, alongside growing Bitcoin holdings to 9,400 coins by year-end 2026. This comes as the stock has fallen over 77% year-to-date, with recent Q2 2025 earnings showing modest revenue growth of 1.1% but a net loss of $9.1 million, underscoring the challenges of depressed pricing on capital raising.
B.Riley initiated coverage on Sequans Communications (SQNS) with a Buy rating and a $13.00 price target, suggesting significant upside from its current $7.97 trading price. The firm highlights SQNS's undervaluation, trading at 0.7 times modified net asset value (mNAV) versus a 1.0 times peer average, despite its hybrid semiconductor and Bitcoin treasury model. This discount is considered unwarranted, as operating businesses typically command premiums. Sequans reported Q2 2025 revenues of $8.1 million, a modest 1.1% year-over-year increase, alongside a net loss of $9.1 million. The company's strategic focus on IoT and Bitcoin investments is central, with B.Riley projecting Bitcoin holdings to reach approximately 9,400 coins by year-end 2026. The analyst firm forecasts an mNAV improvement to 1.2 times over the next 12 months. The stock has faced substantial pressure, down over 77% year-to-date, with a $114 million market capitalization. B.Riley notes that the current depressed valuation hinders Sequans' ability to raise capital accretively, sustaining pressure on the stock price. A P/E ratio of 0.53 further underscores the perceived undervaluation.
AI-powered research, real-time alerts, and portfolio analytics for institutional investors.
Request a DemoOverall Sentiment
strongly positive
Sentiment Score
0.70
Ticker Sentiment
