JPMorgan analyst Ella Smith downgraded Alarm.com (ALRM) to Underweight from Neutral with a price target of $50, down from $65, after assuming coverage of the name. Alarm.com has built a “highly scalable and dependable” cloud-monitoring and management platform, focused on the residential and commercial security space, the analyst tells investors in a research note. However, the firm has concerns surrounding the company’s revenue headwinds, limited margin upside, and a relatively higher mix of hardware/non-recurring revenue streams, versus similarly valued stocks. Alarm.com is experiencing a period of stark revenue deceleration and heavy competition limits its pricing power and margin upside, contends JPMorgan.

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