Resideo Technologies Inc. (NYSE:REZI) is one of the 8 Hidden Multibagger Stocks to Buy Now. On July 1, Jay Goldberg from Seaport Research started coverage of Resideo Technologies Inc. (NYSE:REZI) with a Buy rating and set a price target of $55. The firm's ******* igned price target reflects an additional 76% upside from current levels. Despite weakness in the consumer electronics market, the firm believes two key developments will support the company's growth. First is the renegotiated agreement with its parent company, which is expected to generate $140 million in additional annual cash flow. Second, Resideo is preparing to spin off its lower-margin distribution business. According to the ******* yst, the company's security and safety products are generally more resilient than other consumer products and tend to perform well even during slower housing markets.
For fiscal year 2026, Resideo Technologies Inc. (NYSE:REZI) reaffirmed its outlook and provided ranges for the second quarter. The company expects total company net revenue for the quarter to range from $1.916 billion to $1.940 billion. Total adjusted EBITDA is projected to range between $216 million and $230 million. On the earnings side, fully diluted EPS is forecasted to be in the range of $0.71 to $0.75.
CFO Michael Carlet remarked:
"We anticipate higher costs during 2026 in areas such as fuel on freight. We intend to take pricing actions starting in the second quarter that are intended to fully mitigate these increasing costs. There could be a slight headwind to the gross margin for each business segment in the second quarter."
Resideo Technologies Inc. (NYSE:REZI) makes smart home technology for comfort, energy management, and safety, including thermostats (Honeywell Home), smoke detectors, security systems, and water management, and also operates ADI Global Distribution, a major wholesale distributor of security, fire, and low-voltage products to professionals worldwide.