Freedom Broker lowered the target price for A10 Networks shares to $36 and maintained a “Buy” rating

Growth in sales to enterprise customers helped A10 Networks (NYSE: ATEN) beat Freedom Broker’s expectations for revenue and earnings for Q3 2026. Analyst Almas Almaganbetov raised his revenue and net income forecasts for 2026 and 2029. At the same time, he lowered the stock’s target price from $38 to $36 due to lower market valuations for sector peers and maintained a “Buy” rating. The new target is about 25% above the $28.74 price used in the Nov. 12 report.

A10 Networks is a U.S. provider of hardware and software for managing network traffic and protecting applications. Its solutions help distribute loads across servers and protect services from network attacks.

Enterprise sales nearly doubled

According to A10 Networks’ quarterly report, revenue rose 22.6% year over year to a record $91.5 million, versus Freedom Broker’s forecast of $83.4 million. Adjusted earnings per share increased by about 35% to $0.31, compared with the expected $0.29.

Revenue from product sales grew 32% to $58.5 million. In Almaganbetov’s view, expanding sales to enterprise customers reduces the company’s dependence on its largest clients, while the partnership with Microsoft remains important to the business. Among growth drivers, the analyst highlights A10 Defend, solutions for protecting networks from attacks, and AI Firewall, which helps control application and system traffic based on AI.

Why the target price fell despite improved forecasts

A10 Networks’ management raised its 2026 revenue growth forecast from 12–14% to about 16% and now expects adjusted earnings per share in the range of $1.08–1.10. By 2029, the company aims to bring annual revenue to $500 million by developing its core business, and adjusted earnings per share to $2.

Despite improved financial forecasts, Freedom Broker lowered the target price: comparable companies in the AI infrastructure and data center segment are now valued by the market more cheaply relative to their financial metrics.

This is not an individual investment recommendation.