Renewed Optimism is Surrounding DASAN Zhone Solutions Inc. (NASDAQ:DZSI)

Renewed Optimism is Surrounding DASAN Zhone Solutions Inc. (NASDAQ:DZSI)

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The DASAN Zhone Solutions Inc. (DZSI) shares are trading at higher $8.64 and the avg recommendation for the stock is Moderate Buy. The current analyst price target stands at $11.17.

To add more color to this target, the company’s high over the last year is $13.33 and the low is $2.90. Over the last 52 weeks, DZSI is down -35.18% while the S&P 500 is down -2.55%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, DZSI reported a profit of $15.99 million. DASAN Zhone Solutions Inc. also saw revenues increase to $47.48 million. In addition, DZSI has free cash flow of $34000.0 as of 03-2020 The company’s EBITDA came in at -$6.2 million which compares well with its peers.

DZSI booked profit margins of -7.30%, its Return on Equity (ROE) is -18.80%, and its Return on Assets is -8.00%. All told, it is clear that, DZSI needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. DZSI has a short ratio of 1.93 and outstanding shares of 21.47M.

Company Outlook

DZSI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 72240.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.94. DASAN Zhone Solutions Inc. DZSI also noted assets of $229.37 million at the end of the last quarter. Investors should also keep an eye on sector updates as DZSI has historically followed its peers on positive news.

All told, DASAN Zhone Solutions Inc. DZSI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, DZSI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

DASAN Zhone Solutions Inc. DZSI is now commanding a market cap of 184.20M and a float of 11.86M. DZSI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of DZSI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in DZSI, either long or short, and we have not been compensated for this article.