Sequans Communications, trading at $3.00, is worth $20.00, this analyst says

Scott Searle of Roth Capital Partners reiterated a “Buy” rating and $20.00 price target on Sequans Communications (Sequans Communications Stock Quote, Chart, News, Analysts, Financials NYSE:SQNS), saying the stock remains deeply undervalued relative to its underlying assets and operating business.

In a March 18 report, Searle said Sequans is trading at a significant discount to its estimated net asset value of about $5 per share, with the stock recently closing at $3.29.

“Collectively, we see upside to $20+ and remain aggressive buyers at current levels,” he said.

Sequans, based in Paris, develops LTE and 5G semiconductor solutions for broadband and Internet of Things (IoT) applications.

Searle said the discount reflects investor confusion following the company’s Bitcoin treasury initiative launched in mid-2025, but added that the market is overlooking the strength of its core IoT business.

He noted that Sequans’ ongoing share buyback program is highly accretive, estimating that each 10 per cent reduction in shares outstanding could add more than $0.50 per share to net asset value.

“We believe that as investors become fully aware that SQNS is pursuing its IoT operating strategy… shares will be positively revalued,” Searle said.

The analyst pointed to continued momentum in the company’s IoT segment, with more than $300-million in design wins already secured and a $550-million sales pipeline. Much of the activity is focused on Cat 1bis solutions used in applications such as telematics, asset tracking and security.

He said about 44% of designs are currently in production, with that figure expected to exceed 50% by year-end, which could bring the company close to break-even by the first half of 2027.

Searle also highlighted Sequans’ early positioning in next-generation IoT connectivity, particularly in eRedCap technology, where the company is pursuing multiple licensing opportunities that could begin to materialize in 2026.

In addition, the company’s acquisition of ACP earlier this year is contributing to new design wins in radio-frequency components, with revenue expected to begin scaling in 2026.

Searle said the market is currently assigning little value to Sequans’ operating business, which he estimates could be worth between $100-million and $200-million, with potential upside to more than $350-million as growth accelerates.

“In aggregate, we believe SQNS is conservatively worth $20+ per share,” he said.

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