Peraso (PRSO) Stock Forecast & Price Target

Peraso Inc is positioned for sustained growth in its millimeter wavelength (mmWave) revenue through 2025, largely supported by an expanding order backlog and augmented production commitments from customers. The company has demonstrated an improved sales pipeline, increasing its total funnel to 82 from 69 and enhancing its qualified pipeline to 23 compared to 18 year-over-year. Additionally, Peraso continues to explore new application areas for mmWave technology, particularly in tactical communications, which underscores its potential for significant performance and cost advantages in various markets.

Peraso Inc. faces a challenging market environment primarily dominated by larger wireless carriers, limiting its capacity to compete effectively in the mmWave sector. The company’s revenue from its memory business is projected to decline, while its customer mix remains concentrated, making it vulnerable to the loss of key clients such as WeLink, which has a history of delayed payments impacting cash flow. Additionally, the gross margins on core mmWave products are significantly below target levels, necessitating improvements that may not sufficiently enhance profitability amidst ongoing losses and potential capital shortages in the near term.