B. Riley Securities Begins Coverage of Sequans Communications S.A. - Depositary Receipt (SQNS) with a Buy Rating
B. Riley Securities Coverage: On October 16, 2025, B. Riley Securities initiated coverage of Sequans Communications S.A. (NYSE:SQNS) with a Buy recommendation, projecting a significant upside of 622.01% based on an average one-year price target of $56.10/share.
Institutional Interest and Sentiment: There are 32 funds reporting positions in SQNS, with total shares owned by institutions increasing by 311.81% to 58,790K shares. The put/call ratio of 0.05 indicates a bullish outlook among investors.
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Sequans Communications (SQNS) Regains NYSE Compliance After $195M Private Placement
- Compliance Restoration: Sequans Communications was notified of non-compliance in June 2025 due to average market capitalization and stockholders’ equity falling below $50M, but has now regained compliance, indicating improved financial health.
- Successful Financing: The company significantly increased equity and market capitalization through a $195M private placement completed in July 2025, enhancing its standing in the capital markets.
- Debt Management: Sequans redeemed 50% of its convertible debt through strategic asset reallocation, which not only alleviated financial burdens but also optimized its capital structure.
- Increased Market Confidence: The restoration of compliance and successful financing have bolstered investor confidence in Sequans, which is expected to positively impact its future stock performance and market competitiveness.
Recent Analyst Updates Influence the Narrative for Sequans Communications
Analyst Price Target Adjustment: Sequans Communications' consensus analyst price target has decreased from $21.33 to $20.67, reflecting mixed sentiments among analysts regarding the company's near-term challenges and long-term growth potential.
Bullish and Bearish Perspectives: Analysts from B. Riley and Roth Capital express both optimism about Sequans' growth prospects and caution due to operational headwinds, with B. Riley initiating coverage with a Buy rating and Roth Capital lowering its price target while maintaining a Buy rating.
Stock Split Announcement: Sequans has announced a 1-for-10 stock split effective September 17, 2025, which may enhance stock liquidity and attract institutional interest, aligning with the company's long-term growth strategy in the semiconductor sector.
Financial Metrics Update: Revenue growth projections for Sequans have significantly increased from 24.90% to 38.13%, while the future P/E ratio has declined from 65.94x to 46.84x, indicating a shift in financial outlook amidst ongoing market challenges.
