BWS Financial has lifted its price target on A10 Networks (ATEN) to $28 from $24 and maintained a Buy recommendation, citing the company’s positioning in network security amid rising AI-related network traffic. The stock is currently trading at $20.05, while analyst targets published elsewhere range from $22 to $25, leaving room for potential upside under the new BWS projection.
In explaining the target increase, the analyst firm emphasized A10 Networks’ central role in securing and managing traffic associated with AI workloads. BWS noted that management’s guidance includes a revenue growth outlook through 2028 that is at a higher growth rate than 2026, a projection the firm views as supportive of a higher valuation.
Operational metrics underpinning BWS’s assessment include a reported 79% gross profit margin and an 11% increase in revenue over the last twelve months. The analyst firm also argued that A10’s deeper integration with AI-related investment should prompt a rerating of the stock, reflecting a recalibration of investor expectations around demand for network security appliances and software.
Recent quarterly results bolstered the positive sentiment. A10 Networks reported Q4 2025 earnings of $0.26 per share, beating a $0.24 consensus estimate, and posted revenue of $80.4 million versus an expected $77.3 million. The company’s performance in the quarter was cited as evidence of momentum heading into the forecast period.
Other broker commentary has been mixed but generally constructive. One large firm raised its price target to $23 from $22 while retaining a Neutral rating after attending A10 Networks’ investor day. That firm highlighted management’s projection of a revenue compound annual growth rate of more than 12% from 2027 to 2028, a pace that it said exceeds consensus expectations.
Separately, three analysts have recently revised their earnings estimates for the company upward, reflecting changing views on near-term profitability. Together with A10’s reported financial metrics, these analyst updates factor into the debate over whether the stock is undervalued or poised for revaluation as AI traffic expands.
For investors, the juxtaposition of a raised price target and ongoing Neutral ratings underscores a range of perspectives on how quickly market sentiment will shift. The stock’s current trading level below many targets indicates that at least some analysts see significant upside if A10 continues to deliver on its growth outlook and capitalize on AI-driven demand for secure network infrastructure.