Analysts Confident in Harmonic (HLIT) Outlook As Video Business Divestiture Advances

Core Insights - Harmonic Inc. (NASDAQ:HLIT) is recognized as one of the best rising tech stocks to buy now [1] - Analysts maintain a positive outlook on Harmonic, with 60% rating it as a "Buy" and a median price target of $12.00, indicating a potential upside of 21.50% [2] Business Developments - On December 8, 2025, Harmonic announced a binding offer from MediaKind to acquire its Video Business segment for approximately $145 million in cash, marking a strategic repositioning for the company [3] - The divestiture is subject to a consultation process with the French employee works council, regulatory approvals, and customary closing conditions, with an expected closure in the first half of 2026 [3] Strategic Focus - The divestiture aims to allow Harmonic to concentrate on its core virtualized broadband business, which management identifies as the long-term growth driver [4] - This transaction is expected to strengthen the company's balance sheet and provide financial flexibility for customer expansion, product investment, and shareholder value creation [4] Management Perspective - CEO Nimrod Ben-Natan believes the divestiture will enable the company to focus on broadband priorities while placing the Video Business within an organization dedicated to advancing video delivery technologies [5] - Following the announcement, Needham reiterated its "Buy" rating for Harmonic with a price target of $15.00 [5] Business Operations - Harmonic's Broadband segment delivers software-based access solutions to cable operators globally [6]