Craig-Hallum Reiterates Buy Rating on Lantronix (LTRX) with a $5 PT Following FQ4 Earnings

Lantronix Inc. (NASDAQ:LTRX) is one of the best AI stocks to buy according to analysts. On August 28, Christian Schwab from Craig-Hallum reiterated a Buy rating on Lantronix, with a price target of $5.00. This sentiment followed the company’s announcement of its financial results for FQ4 2025 and FY2025. The company reported a FQ4 revenue of $28.8 million, which was a sequential increase from $28.5 million. For the full FY2025, total revenue was $123 million.

Despite a return to sequential revenue growth, the company faced some financial challenges. For Q4 2025, Lantronix reported a GAAP net loss of $2.6 million, or $0.07 per share, compared to a GAAP net income of $400,000 in the same quarter of the previous year.

Craig-Hallum Reiterates Buy Rating on Lantronix (LTRX) with a $5 PT Following FQ4 Earnings

Lantronix secured an agreement with a US mobile carrier to modernize 50,000+ backup power systems and wireless cell sites. The company also announced a win with Red Cat’s Steel Drones, where its secure edge compute solutions will power Black Widow drones for the US Army’s short-range reconnaissance program.

Lantronix Inc. (NASDAQ:LTRX) develops, markets, and sells industrial and enterprise IoT products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan.

While we acknowledge the potential of LTRX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LTRX and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.