The Bottom Is in for Powerfleet: An Intelligent Time to Buy

Key Points

• Powerfleet is well-positioned to provide SaaS services to the IoT industry, aided by AI.
• Analysts are bullish on this stock and see it advancing to set a new high.
• Hypergrowth and hyperprofitability are in the forecast; the forecast may be cautious. 

After correcting more than 50% from its 2025 high to low, the bottom is in for Powerfleet NASDAQ: AIOT, and a powerful rebound is brewing. Slow to gain traction, traction was revealed in the FQ4 results, and it promises to drive shareholder value in the coming fiscal year.

Highlights from F2025 include the completion of transformation efforts, which involved acquisitions, divestitures, and reorganization into a more focused company centered around its growth pillars. These include IoT-enabled SaaS video and warehouse safety/security operations, which are higher-margin businesses expected to drive growth for years. 

Tepid Results No Problem for AIOT Market in June

Powerfleet’s FQ4 results were tepid relative to the analyst forecasts, but that is the only negative to be reported. The company’s relative tepidness is offset by hypergrowth, the second quarter of sustained 200% year-over-year revenue growth, aided by acquisitions, and profits.

Profits are among the critical factors driving this market. The company improved its profitability in the quarter and is expected to sustain it in F2026. Segmentally, the company experienced substantial growth in Products and Services, led by a 49% increase in its core service business.

Within that, the critical Video and Warehouse Safety segments grew organically by 20% and 17%, respectively. 

Margins were solid in Q4 and expected to remain strong in F2025. The company’s gross margin improved by 700 basis points, underpinning the profitability shift. The adjusted EBITDA margin also expanded significantly, by 500 basis points, driving a 65% increase in EBITDA and a positive outlook for the subsequent year.

Regarding the outlook, the company states that acquisitions and new clients present numerous opportunities for cross- and upselling, enabling it to issue a favorable outlook with confidence in the company’s pipeline and ability to drive growth expansion. 

The analysts' forecasts are robust, providing a carrot for the market as well as a potential catalyst. The forecast is for growth to slow to a sustainable 20% annual pace in 2026, which is a cautious outlook given the Q4 results and current business momentum. As importantly, the consensus for earnings growth reported by MarketBeat is for accelerated growth topping 100% over the next three to five years. 

Analysts Forecast Triple-Digit Upside for AIOT Stock

The analysts' support for AIOT stock is on the tepid side, with only five tracked by MarketBeat. However, all five issued commentary or revisions in 2025 that align with a very bullish outlook. They unanimously rate the stock as a Buy and expect it to trade 115% above the mid-June price points.

The high end of the range adds nearly 45% to it, and it may be a low target given time. Assuming the company follows through with its transition and its Unity platform remains well-received by businesses, analyst trends will likely remain positive, resulting in a rising price target range. 

Institutional interest in this technology stock is likewise bullish. The group owns more than 70% of the stock and has been buying it robustly this year. The H1 activity includes buying ramping to a multi-year high, netting nearly half a billion dollars in shares. 

The post-release price action isn’t robust but affirms the bottom for this market. The price surged more than 8% to open with a gap, trading above a critical moving average. The critical average in question is the 6-day Exponential Moving Average (EMA), reflecting a change in day-trader sentiment.

With this in play, the market for this stock may continue advancing and regain support at the 30- and 150-day EMAs quickly. In this scenario, a move to the consensus $10.50 and a new all-time high.