Needham analyst Richard Valera initiated Lantronix with a Buy rating and a price target of $5.50, saying the company has reversed a trend of declining revenues since late 2015 under the leadership of its new CEO Jeff Benck. The analyst notes that the company is now growing and profitable, having ended FY18 on a strong note with a 9% revenue growth, as a result of new design wins in the Internet of Things realm along with its recent RFQ wins in IT management. Valera further states that if Lantronix can sustain its recent trajectory of improving sales and profitability, he sees shares rising even higher, adding that while some near term pressure related to China tariffs is possible, he sees those risks reflected in his valuation model.