Craig-Hallum Reiterates Buy Rating on Lantronix (LTRX) with a $5 PT Following FQ4 Earnings

Lantronix Inc. (NASDAQ:LTRX) is one of the best AI stocks to buy according to analysts. On August 28, Christian Schwab from Craig-Hallum reiterated a Buy rating on Lantronix, with a price target of $5.00. This sentiment followed the company’s announcement of its financial results for FQ4 2025 and FY2025. The company reported a FQ4 revenue of $28.8 million, which was a sequential increase from $28.5 million. For the full FY2025, total revenue was $123 million.

Despite a return to sequential revenue growth, the company faced some financial challenges. For Q4 2025, Lantronix reported a GAAP net loss of $2.6 million, or $0.07 per share, compared to a GAAP net income of $400,000 in the same quarter of the previous year.

Lantronix secured an agreement with a US mobile carrier to modernize 50,000+ backup power systems and wireless cell sites. The company also announced a win with Red Cat’s Steel Drones, where its secure edge compute solutions will 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.