PowerFleet (AIOT) Poised to Deliver Strong Returns After an Impressive Quarter

PowerFleet Incorporated (NASDAQ:AIOT) is one of the 9 small-cap software infrastructure stocks with the highest upside potential.

On February 9, PowerFleet Incorporated (NASDAQ:AIOT) announced results for the third quarter. The company reported topline figures of $113.5 million, compared with consensus estimates of $111.69 million.

CEO Steve Towe stated:

“This was the Q1 in which year-over-year results reflect the total combined businesses, and PowerFleet Incorporated (NASDAQ:AIOT) delivered another quarter of solid execution across the organization. Total revenue reached a company high of $113.5M, driven by strong recurring revenue growth reflecting an 11% year-over-year increase in high value services which now represents 80% of total revenue.”

Back on January 9, Northland Securities assigned an Outperform rating to PowerFleet Incorporated (NASDAQ:AIOT), with a target price of $10. This results in a lucrative upside potential of almost 164%.

The firm also labeled PowerFleet Incorporated (NASDAQ:AIOT) as a “Top Pick for 2026,” attributing this to the company’s ongoing execution of post-combination strategy. It also reflected on the bullish sentiment around the stock, backed by new logo wins, AI Video growth, and success in cross-selling opportunities. The firm views the stock as highly underappreciated, with expectations of a re-rating.

PowerFleet Incorporated (NASDAQ:AIOT) is a SaaS provider that specializes in artificial intelligence-of-things (AIoT). It offers the Unity platform, which is part of its Unity solutions portfolio. The platform helps integrate AIoT devices and business systems with a data highway that generates AI-enabled insights for customers. The company also provides SaaS-based unity modules that include vehicle, video, and in-warehouse IoT solutions.

While we acknowledge the potential of AIOT 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.