Overview
Mizuho raised its price target on A10 Networks shares (NYSE:ATEN) to $23 from $22 on Thursday and retained a Neutral rating. The bank noted the targets management presented at the company's recent investor day as a basis for the modest increase in the target, but it did not move to a more bullish stance.
Investor day takeaways
Representatives from Mizuho attended A10 Networks' investor day on Wednesday, where management described its advanced networking and cybersecurity platform and outlined forward-looking revenue ambitions. Company management is targeting a compound annual revenue growth rate of more than 12% from 2027 to 2028 - a pace Mizuho said sits ahead of consensus expectations.
Recent operating performance
A10 has shown recent momentum, delivering 11% revenue growth over the last twelve months and maintaining gross profit margins of 79%. The company’s fourth-quarter 2025 results also beat Wall Street estimates: reported earnings per share were $0.26 versus an expected $0.24, an 8.33% surprise, while revenue came in at $80.4 million versus forecasts of $77.3 million.
Analyst and research signals
InvestingPro analysis indicates the shares trade at a price-to-earnings ratio of 34.47, and suggests the stock remains undervalued relative to its Fair Value. According to InvestingPro Tips, three analysts have recently revised their earnings estimates upward for the upcoming period. A broader Pro Research Report is available covering ATEN and more than 1,400 other U.S. equities.
Mizuho’s outlook and concerns
While Mizuho acknowledged tailwinds for A10 Networks - including growing demand to secure critical AI services and infrastructure - the firm expressed caution about the sustainability of the higher growth trajectory. Mizuho flagged skepticism around the company’s ability to execute consistently despite recent improvements, and warned that it could take time before AI-related initiatives materially affect the company's financial model.
Market reaction and analyst activity
The combination of management's growth targets and the quarterly beat contributed to positive investor sentiment. The reporting noted that there have been no recent analyst upgrades or downgrades for A10 Networks. These items are part of the company’s ongoing financial updates and the market’s assessment of its progress toward the goals discussed at investor day.
Bottom line
Mizuho’s modest price-target increase reflects the company’s own growth objectives communicated at investor day, while the bank’s Neutral rating underscores lingering doubts about execution and the timeline for material financial benefit from AI-related initiatives. Recent quarterly results and elevated gross margins provide supporting evidence of operational strength, but questions about durability of higher growth and execution remain.