On Monday IronNet Inc. (NYSE:IRNT) shares declined by 5.95% after Jefferies reduced the price target. Analyst Joseph Gallo lowered IRNT’s PT to $10 per share from $27, citing the company’s ambitious guidance. Gallo thinks IronNet will miss its Q3 ARR guidance, prompting further declines in the stock price.
IronNet’s annual recurring revenue (ARR) declined sequentially while total revenue fell in the last two quarters, thus raising the risk profile for the stock. As a result, Analyst Gallo thinks IronNet’s consensus revenue forecast of about 68% Y/Y growth may prove too tough to achieve.
After going public, the stock spiked more than 318% between the 24th of August and the 16th of September before plummeting by nearly 79% to swing to a net year-to-date loss of 17.73%.
Is it too late to sell?
IronNet shares have plunged to trade below Jefferies’ new price target of $10. At the current price of about $8.54, IRNT shares are trading at new all-time lows and still at a steep P/S ratio of 25.68.
Therefore, it may not be an ideal situation to sell the stock now, with the most likely event to follow, being a technical rebound.
Source – TradingView
Technically, IronNet shares seem to be trading within a descending channel formation in the intraday chart. As a result, the stock has fallen closer to the oversold conditions of the 14-day RSI.
Therefore, investors could target technical rebounds at about $12.48, or higher at $16.72, while $4.95 is a crucial support level.
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