Arlo Technologies, Inc. (NYSE:ARLO) shares closed 10.41% higher on Wednesday, following the company’s reported Q3 results, with EPS coming in at ($0.08), better than the consensus estimate ($0.14). Quarterly revenues of $111.15 million beat the consensus estimate by 5.03%.

Analysts at Deutsche Bank said they are encouraged by Q3 results and Q4 guidance as the company is seeing healthy Product demand and robust growth in its Services business. According to the brokerage, the company did a good job in the quarter navigating the supply-chain and logistical challenges to report upside to the high-end of Q3 guidance, while Q4 guidance indicates continued strong Product and Services demand. Post results, the brokerage has increased confidence in the continued growth of the company's Services business and believes the company has done a good job in adjusting its business model to support Services growth and executing during the pandemic. While the brokerage raised its price target from $9 to $10, it believes a meaningful multiple expansion from the Services transformation will still take some time.