Zacks Investment Research Initiates Research Report on FatPipe (FATN) Target Price Set at $5
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
News Market Reaction – FATN
On the day this news was published, FATN declined 0.56%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Momentum data flags mixed moves among peers: LIDR was up 3.73% while LHSW was down 13.63%. With the scanner labeling this as not a sector move and FATN’s own direction unspecified, the Zacks initiation appears more company-specific than part of a broad software rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 02 | Q3 earnings | Positive | +3.4% | Strong Q3 FY2026 growth with 30% revenue and 48% MRR increases. |
| Jan 28 | Earnings webinar | Neutral | -1.5% | Announcement of investor webinar to review Q3 financial results. |
| Jan 22 | Industry ranking | Positive | +4.6% | Ranked #1 for Product and Support in 2026 SD-WAN Midmarket Report. |
| Dec 23 | Tech capability | Positive | -2.3% | Showcased autonomous vehicle connectivity with 99%+ availability in trials. |
| Dec 16 | Investor webinar | Positive | -5.3% | Live investor webinar highlighting margins, customer base, and growth drivers. |
Recent news has produced a mix of positive and negative next-day moves; strong operational or recognition updates have sometimes led to gains, while investor events have not always been rewarded.
Over the past few months, FatPipe reported solid Q3 FY2026 results on Feb 2, 2026, with revenue of $4.1M, up 30% year over year, and saw a 3.37% next-day gain. Recognition as #1 for Product and #1 for Support in Info-Tech’s 2026 SD-WAN Midmarket Report on Jan 22, 2026 coincided with a 4.59% rise. Other items, like investor webinars and technology highlight pieces, have drawn mixed to negative reactions, underscoring inconsistent trading responses to otherwise constructive news.
Market Pulse Summary
This announcement spotlights third-party validation, with Zacks Small-Cap Research initiating coverage and setting a $5.00 target while benchmarking FatPipe against peers trading at 7.0x EV/2026 sales. It follows Q3 FY2026 results showing $4.1M revenue, up 30% year over year, and cash of $6.2M. Investors may monitor execution toward FY2027 growth expectations, balance sheet items like $4.6M in long-term debt, and whether future updates sustain recent operational momentum.
AI-generated analysis. 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
FAQ
What did Zacks announce about FatPipe (FATN) on February 18, 2026?
How did Zacks justify the $5 target for FatPipe (FATN)?
Will FatPipe's increased salesforce affect FY 2027 growth for FATN?
What does the Zacks coverage mean for FATN shareholders now?
How does Zacks compare FatPipe (FATN) to peers in valuation?
