Peraso (PRSO) Stock Forecast & Price Target

Peraso Inc. has demonstrated strong momentum with its DUNE platform, receiving multiple new purchase orders that indicate a growing design win pipeline. The company has also achieved a significant military purchase order for its Perspectus mmWave modules, highlighting the technology's suitability for advanced applications such as stealth communications in challenging environments. Furthermore, there is an optimistic outlook for geographic expansion, positioning Peraso well for market penetration and revenue growth across diverse regions, including the United States, Hong Kong, Taiwan, and beyond.

Peraso Inc. faces significant challenges due to its reliance on a concentrated customer base, which poses a substantial risk if key clients, such as WeLink, encounter financial issues, including missed payments that adversely affect working capital. The company's gross margins on core mmWave products remain significantly below target levels, indicating potential long-term profitability concerns exacerbated by declining revenue from its memory business as past design wins diminish. Additionally, persistent losses are anticipated through 2023, coupled with a weak cash position and the necessity for further capital funding in a competitive market, all of which could hinder the company's ability to secure favorable financing terms.