Lake Street Raises Lantronix (LTRX) PT to $5, Cites Wins, Growth in Unmanned Systems

Lantronix Inc. (NASDAQ:LTRX) is one of the worst AI stocks to invest in according to financial media. On August 28, Lake Street raised the firm’s price target on Lantronix to $5 from $4, while keeping a Buy rating on the shares after the company reported revenue and EPS in line with estimates for FQ4 2025, through both steady growth as well as strategic wins, despite some financial pressures.

For Q4, Lantronix reported revenue of $28.8 million, which was slightly higher than Q3’s $28.5 million. However, the full-year revenue for FY2025 was $123 million, which showed a 41.23% year-over-year decline. Still, the non-GAAP EPS for Q4 was $0.01, which was within the company’s guidance range. Despite a non-GAAP net income of just under $40oK, the company experienced a GAAP net loss of $2.6 million, or $0.07 per share, compared to a GAAP net income of $400K in the same quarter a year ago.

Lantronix is expected to benefit from a multi-year growth cycle in the unmanned aerial systems market, with over $13 billion earmarked for unmanned platforms in 2026 defense funding. A key win was a contract with Red Cat’s Steel Drones to power Black Widow drones for the US Army’s short-range reconnaissance program.

Lantronix Inc. (NASDAQ:LTRX) develops, markets, and sells industrial and enterprise IoT products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan.

While we acknowledge the potential of LTRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.