Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 6 Jul, 26 | FATN | Buy | USD 6.11 | USD 6.43 | USD 6.72 | Same day | Closed |
10.31%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
FatPipe, Inc. develops application-aware, secure software-defined wide area network, secure access service edge, and network monitoring service (NMS) software solutions in the United States, India, and internationally. The company offers SD-WAN, a network architecture solution that allows enterprises to utilize software and virtualization technologies to enhance the performance, security, and manageability of their WANs that connect offices, data centers, cloud applications, and cloud storage; SASE that provides virtual network functions, which combine networking and network security services into a single cloud-delivered solution; and NMS, a EnterpriseView reporting system for network monitoring that provides a platform to monitor an end-user's WAN and the performance of FatPipe devices under management. It also provides technical support services, professional, technology development, and training services. In addition, the company offers its solutions to enterprises, communication service providers, security service providers, government organizations, and other middle-market companies. The company sells its software solutions through a subscription-based model through a network of distributors, value-added resellers, internet service providers, and other third parties. FatPipe, Inc. was incorporated in 2010 and is headquartered in Salt Lake City, Utah.
Increase in Gross Profit: USD 17.48 Mn in FY26 vs USD 15.23 Mn in FY25
Increase in Revenue: USD 19.21 Mn in FY26 vs USD 16.29 Mn in FY25
Increase in Operating Cash Outflow: USD 0.78 Mn in FY26 vs USD 0.50 Mn in FY25
Increase in Sales and Marketing Expense: USD 4.79 Mn in FY26 vs USD 3.75 Mn in FY25
Key investment risks include 39.3% revenue concentration across three channel partners in FY26, dependence on sales execution and partner productivity, intense competition from larger vendors, potential cybersecurity or product failures, collection risk on long-duration contracts, continued operating cash outflows, and USD 4.6 million of outstanding debt
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 6.11 | 5.48 | 6.43 | 6.72 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Growth and Sales Execution: FatPipe delivered FY26 revenue of USD 19.2 million, up 17.9% from USD 16.3 million in FY25, supported by a larger sales organization, higher recurring billings, new customer wins, and contributions from cybersecurity offerings. The stronger fourth quarter also demonstrated improving sales productivity and larger deal sizes.
Recurring Billings Strengthen Visibility: Recurring annual and monthly product and service billings increased approximately 14% year over year, while monthly recurring billings rose materially. The company’s multi-year subscription contracts, expanding customer deployments, and improving renewal base provide greater revenue visibility and support a more predictable, scalable recurring revenue model.
Integrated Platform Expands Addressable Market: FatPipe expanded its platform into an integrated single-stack offering combining SD-WAN, SASE, cybersecurity, network monitoring, SIEM, and email security. This broader product suite increases cross-selling potential, reduces customer dependence on multiple vendors, and positions the company to capture a larger share of enterprise networking and cybersecurity spending.
Operating Leverage Supports Profitability: Adjusted EBITDA increased 34.2% to USD 5.4 million in FY26, while non-GAAP net income rose 228% to USD 6.4 million. High gross margins and disciplined cost control enabled strong operating leverage, although higher public-company, sales, and product investment expenses partly moderated underlying profitability expansion.
Financial Capacity Supports Expansion: Cash increased to USD 5.2 million and stockholders’ equity reached USD 25.2 million at FY26-end, supported by IPO proceeds and retained earnings. The company also doubled sales headcount, expanded channel relationships, and strengthened access to government procurement opportunities, supporting its targeted 15%–18% long-term growth ambition.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to FatPipe, Inc. (NASDAQ: FATN) at the current market price of USD 6.11, as on 06 July,2026 at 8:25 am PDT
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Infrastructure
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| FATN FatPipe, Inc. Common Stock |
-0.03 0.67% | 4.46 | 41.20 | 9.81 | 1.82 | 4.69 | 1.79 | 22.40 |
| MSFT Microsoft Corporation |
-1.67 0.42% | 400.62 | 37.32 | 29.94 | 13.03 | 12.45 | 13.06 | 24.59 |
| ORCL Oracle Corporation |
3.73 3.07% | 125.11 | 29.34 | 18.66 | 5.55 | 74.06 | 7.10 | 18.13 |
| CRWD Crowdstrike Holdings Inc |
-5.55 2.80% | 192.94 | - | 89.29 | 23.70 | 24.81 | 21.91 | 577.82 |
| PANW Palo Alto Networks Inc |
-12.06 3.46% | 336.60 | 44.57 | 45.05 | 11.98 | 20.70 | 11.82 | 77.11 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on July 6, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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