Peraso (PRSO) Stock Forecast & Price Target

Peraso Inc has demonstrated a substantial improvement in gross margin, expanding to 56.2% from 48.3% quarter-over-quarter, indicating a favorable change in product mix and effective inventory management. The company anticipates continued growth in mmWave revenue throughout 2025, supported by an expanding order backlog and increased customer commitments, alongside a notable rise in both pre-production products and the overall sales funnel. Additionally, with normalized inventory levels and an enhanced visibility of revenue linked to upcoming product launches, Peraso Inc is well-positioned for sustained financial performance.

Peraso Inc. faces significant challenges in its financial outlook due to a concentrated customer mix that is highly dependent on a few key accounts, particularly with a major customer, WeLink, which has a history of delayed payments affecting cash flow. Additionally, the company's gross margins for core mmWave products are consistently below target levels and recent attempts to improve these margins may prove inadequate, further straining financial performance. Furthermore, the potential need for additional capital within the next 9 to 12 months, coupled with ongoing operational losses and limited cash reserves, raises concerns about Peraso's ability to sustain operations in a competitive market.