Actelis Networks (NASDAQ: ASNS)*, a leader in cyber-hardened networking solutions, continues to strengthen its position in the critical infrastructure sector with its recent announcement of a new order from one of North America’s largest railway groups to support Positive Train Control (PTC) implementation.
This strategic win in the railway sector comes as Litchfield Hills Research analyst Theodore O’Neill reiterates his $5 price target and Buy rating for the company, highlighting Actelis’ significant undervaluation compared to industry peers.
Railway Safety Enhancement
The new railway order focuses on implementing PTC systems across challenging sections of track, furthering the railway industry’s commitment to enhanced safety measures. PTC technology automatically prevents train-to-train collisions, speed-related derailments, and accidents caused by incorrectly positioned switches.
“The implementation of PTC systems across North America’s rail networks is revolutionizing safety in an industry that faces unique environmental and operational challenges,” said Tuvia Barlev, Chairman and CEO of Actelis. “Our technology provides railways with the capabilities needed to deploy these life-saving systems even in the most demanding environments where avalanches, landslides, and severe weather regularly threaten network continuity.”
Actelis’ hybrid-fiber networking technology delivers fiber-grade performance through existing infrastructure, a critical advantage for railway operators working in remote and harsh environments. The solution enables rapid deployment without extensive new wiring installation while supporting mission-critical safety systems with military-grade security.
Analyst Maintains Positive Outlook
Following Actelis’ recent financial results, Litchfield Hills Research has maintained its bullish stance on the company. Analyst Theodore O’Neill emphasized that when viewed on a rolling four-quarter basis, Actelis’ business is “moving in the right direction – up and to the right.”
The research note points out that Actelis shares are “priced significantly below peer averages,” trading at a discount of 85% to 93% on sales measures compared to industry peers. O’Neill suggests that if Actelis were to trade at the simple average of its peers at 3.67x 2026 Market cap/sales, the share price would exceed $6.00, above his current $5 target.
Strong Financial Performance
For the full year 2024, Actelis reported revenue of approximately $7.8 million, representing a 38% increase compared to FY2023. The company achieved a substantial improvement in gross margin to approximately 55% from 34% in the prior year, demonstrating the effectiveness of its strategic shift toward IoT sales and higher-margin software components.
Operating expenses decreased by approximately 13% year-over-year, reflecting the company’s continued cost reduction initiatives while maintaining focus on its core markets including Federal, Military, and Smart City/Transportation sectors.
Expanding Market Presence
The railway order marks another significant milestone in Actelis’ expansion across critical infrastructure sectors. The company continues to leverage its cyber-hardened networking solutions across diverse markets, including government agencies, transportation systems, utilities, and defense installations.
With the global smart cities market projected to expand dramatically over the coming years and increasing focus on infrastructure security, Actelis appears well-positioned to capitalize on growing demand for secure, rapidly deployable networking solutions in challenging environments.
Recent Actelis Networks News Highlights:
- Actelis Networks to Report Annual 2024 Financial Results on Monday, March 24, 2025
- Actelis Networks Reports Full Year 2024 Results: Revenue Sees 38% Growth Reaching $7.8 Million, 125% Increase in Gross Margin, Loss Per Share Shrinks by 67% to $0.85
- Actelis Networks Secures Order for Countywide Intersection Modernization in Ventura County, California
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