Zacks Investment Research Initiates Research Report on FatPipe (FATN) Target Price Set at $5
FatPipe (NASDAQ:FATN) said Zacks Small-Cap Research initiated coverage on February 18, 2026, with a $5.00 target price.
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Rhea-AI Summary
FatPipe (NASDAQ:FATN) said Zacks Small-Cap Research initiated coverage on February 18, 2026, with a $5.00 target price. Zacks applied a 3.5x EV/2026 calendar sales multiple (peers average 7.0x) and highlighted FatPipe's greatly increased salesforce expected to accelerate growth in FY 2027. Company leadership reiterated focus on disciplined execution and long-term shareholder value.
Positive
- Zacks initiation of equity coverage (research catalyst)
- $5.00 target based on 3.5x EV/2026 sales
- Increased salesforce expected to accelerate FY 2027 growth
Negative
- Lower margins cited, implying discount to peers
- Valuation set at 3.5x vs peer average 7.0x
Details
News Market Reaction – FATN
On Feb 18, the day this news came out, FATN closed 0.56% below the previous close.
Data tracked by StockTitan Argus for the Feb 18 session.
Key Figures
- Zacks target price
- $5.00
- Initiation by Zacks Small-Cap Research
- Peer EV/sales multiple
- 7.0x
- Average EV/2026 calendar sales for peers cited by Zacks
- Assigned EV/sales multiple
- 3.5x
- Multiple Zacks applies to FatPipe vs peers
- Q3 FY2026 revenue
- $4.1M
- Quarter ended Dec 31, 2025; up 30% YoY
- Q3 FY2026 net income
- $310,662
- Three months ended Dec 31, 2025
- Nine-month FY2026 revenue
- $12.0M
- Nine months ended Dec 31, 2025
- Cash balance
- $6.2M
- As of Dec 31, 2025, boosted by IPO proceeds
- Long-term debt
- $4.6M
- Includes Fortis Bank term loan at 8.75% interest
Historical Context
-
Strong Q3 FY2026 growth with 30% revenue and 48% MRR increases.
-
Announcement of investor webinar to review Q3 financial results.
-
Ranked #1 for Product and Support in 2026 SD-WAN Midmarket Report.
-
Showcased autonomous vehicle connectivity with 99%+ availability in trials.
-
Live investor webinar highlighting margins, customer base, and growth drivers.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
AI-generated analysis. How Rhea-AI works. Not financial advice.
SALT LAKE CITY, UTAH / ACCESS Newswire / February 18, 2026 / FatPipe, Inc. (NASDAQ:FATN) ("FatPipe" or the "Company"), today announced that Zacks Small-Cap Research ("Zacks") Senior Equity Analyst Lisa Thompson has initiated independent equity research coverage on the Company.
Zacks commented,
"FatPipe's greatly increased salesforce should accelerate growth in FY 2027"
"We believe FatPipe's valuation should be compared to peer companies that trade at an average of 7.0 times EV/2026 calendar sales. Given its lower margins, we think a 3.5 times multiple would be appropriate, yielding
$5.00 "
Dr. Ragula Bhaskar commented, "We remain focused on disciplined execution, innovation, and delivering long-term value to our shareholders. Thank you for your continued confidence and support."
The full equity research report is available on the Zacks website.
About FatPipe, Inc.
FatPipe pioneered the concept of software-defined wide area networking (SD-WAN) and hybrid WANs that eliminated the need for cooperation from ISPs and allow companies and service providers to control multi-link network traffic worldwide. FatPipe has now pioneered cost-effective, advanced single-stack cybersecurity for on-premise deployments that significantly improve network and cybersecurity for SMBs.
For more information, please visit www.fatpipeinc.com.
Follow us on X @FatPipe_Inc
Forward-Looking Statements
Certain statements contained in this press release, may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on management's current expectations and are inherently subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. These risks and uncertainties include, but are not limited to, those described in FatPipe's filings with the U.S. Securities and Exchange Commission. Except as required by law, FatPipe expressly disclaims a duty to provide updates to forward-looking statements, whether as a result of new information, future events or other occurrences.
For Further Information Contact:
Investor Relations
+1 801.683-5656 x 1140
Investor.ir@fatpipeinc.com
SOURCE: FatPipe Networks
View the original press release on ACCESS Newswire
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