JPMorgan has adjusted its outlook on Resideo Technologies (REZI, Financial), moving its rating from Overweight to Neutral, accompanied by a significant reduction in its price target from $31 to $16. This change comes ahead of the company's first-quarter earnings report and is part of a broader reassessment affecting several small-cap internet and video game companies due to prevailing macroeconomic and tariff uncertainties.
Resideo faces notable tariff exposure, with a substantial portion of its products—about 50%—being manufactured in Mexico. Additionally, the company's Snap One proprietary brands are produced in China, further complicating its cost structure amid trade tensions. On a macroeconomic level, the company is particularly vulnerable to fluctuations in residential housing resale and remodeling activities, which adds another layer of risk to its financial performance.
JPMorgan's analysis suggests that Resideo's projections for 2025 may underestimate the potential impact of tariffs and assume a steady or slight growth in the industry, assumptions that now seem overly optimistic given the current economic climate. As a result, investors are advised to consider these factors when evaluating Resideo's future prospects.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Resideo Technologies Inc (REZI, Financial) is $22.00 with a high estimate of $25.00 and a low estimate of $19.00. The average target implies an upside of 40.40% from the current price of $15.67. More detailed estimate data can be found on the Resideo Technologies Inc (REZI) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Resideo Technologies Inc's (REZI, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Resideo Technologies Inc (REZI, Financial) in one year is $23.14, suggesting a upside of 47.67% from the current price of $15.67. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Resideo Technologies Inc (REZI) Summary page.
