Timeline & Revenue Recognition
The press release states that Ceragon will roll out the $8âŻmillion privateânetwork modernization for the powerâutility client over a 12âmonth implementation window, beginning in Q3âŻ2025 and concluding in Q2âŻ2026. Under the companyâs âpercentageâofâcompletionâ accounting policy for large contracts, revenue will be recognized incrementally as the network is built and commissioned, with the bulk of the $8âŻmillion booked in the second half of 2025 and the remainder in the first half of 2026.
Trading Implications
- Nearâterm catalyst: The contract adds ~2â3âŻ% to Ceragonâs 2025â2026 revenue outlook, tightening the topâline guidance and likely prompting a modest priceâtarget upgrade. Expect a shortâterm price lift as the market digests the incremental revenue and the accelerated cashâflow profile (the project is cashâgenerative from Q3âŻ2025 onward).
- Technical outlook: Ceragonâs stock is currently trading near the lower end of its 52âweek range, with the 20âday SMA still below the 50âday SMAâa bullish âgolden crossâ could be triggered if the price rebounds on the news. A break above the $12.00 resistance level would open the path to the next upside target around $13.50, while a failure to hold $11.00 could signal a retest of the $9.50 support.
- Fundamental positioning: The incremental contract improves the companyâs earningsâperâshare (EPS) forecast for FYâŻ2025 and FYâŻ2026, narrowing the valuation gap with peers in the wirelessâinfrastructure space. Investors with a mediumâterm horizon should consider adding to positions on any pullâback, with a view to capture the upside as the Q3âQ4âŻ2025 earnings window approaches.
Bottom line: The 12âmonth rollout (Q3âŻ2025âŻââŻQ2âŻ2026) will drive staged revenue recognition, bolstering Ceragonâs 2025â2026 earnings outlook. The news should act as a shortâterm catalyst; a bullish technical setup combined with the improved fundamentals makes a buyâonâdip or addâon position attractive, targeting a move toward $13.50 in the next 3â6âŻmonths.