Will this partnership open opportunities for additional services or upsell to the same utility or other utilities in the region?

Answer

The $8 million private‑network modernization contract is a clear signal that Ceragon (CRNT) is deepening its foothold with a major EMEA power utility. Because the deal is an extension of an existing relationship, it creates a natural runway for further upsell—‑from adding higher‑capacity microwave links to expanding into 5G‑grade back‑haul, edge‑compute integration, or even managed‑service offerings for the utility’s other assets (e.g., substations, EV‑charging hubs, and renewable‑farm communications). In the broader EMEA power‑grid space, utilities are under pressure to harden cyber‑resilience and meet decarbonisation targets, so Ceragon’s proven wireless platform is likely to be cross‑sold to peer utilities that are still on legacy copper or satellite solutions. The partnership therefore not only secures incremental revenue from the current client but also opens a pipeline of “reference‑sale” opportunities across the region.

Trading implications

Fundamentals: Ceragon’s FY‑25 revenue guidance already incorporates a modest upside from the contract; the added upside from potential upsell could push total‑year‑end revenue 5‑7 % above consensus, tightening the earnings‑margin outlook as the higher‑value services carry better gross margins than basic back‑haul. The utility‑sector tailwinds—grid‑modernisation, renewable‑integration, and increasing regulatory pressure for resilient communications—support a multi‑year demand lift for Ceragon’s core offering.

Technical: The stock has been in a tight 4‑week consolidation around $12.80‑$13.30, forming a bullish flag after a 12 % rally on the earlier contract announcement. A breakout above $13.30 with volume above the 20‑day average would likely trigger a short‑term upside to the next resistance at $14.50, a level that aligns with the 1‑month moving‑average and the 50‑day EMA. Conversely, a break below $12.80 could open a retest of the $11.80 support, where the relative‑strength index (RSI) is already in the 45‑50 neutral zone.

Actionable view

Given the strong upside‑upsell narrative and the technical setup, a long position with a stop just below $12.80 (to protect against a failed breakout) is justified for traders seeking exposure to the utility‑grid modernization theme. If the stock clears $13.30 on solid volume, consider scaling in and targeting $14.50 as the first profit‑taking point, with a trailing stop to capture any further upside from additional utility contracts in the EMEA region.