Netgear shares surge on FCC foreign-made router ban

WiFi router and network equipment maker Netgear NTGR.O shares up 11.3% to $24.55 early Tues after U.S. Federal Communications Commission said on Mon it was banning the import of all new foreign-made consumer routers, citing national security concerns

San Jose, California-based NTGR shares jump as much as 16.9% to $25.78, highest since Dec 11, and tracking biggest daily pct gain in seven months

The regulator's move is latest crackdown on Chinese-made electronic gear. China estimated to control at least 60% of the U.S. market for home routers

FCC's order doesn't impact import or use of existing models, and includes an exemption for routers the Pentagon deems don't pose unacceptable risks

Stifel, which has a 'buy' rating on NTGR, said in a note that co is well positioned to navigate this regulatory shift as co doesn't manufacture in China

While co's current manufacturing locations are foreign, Stifel adds that NTGR's "status as a U.S.-based firm with a transparent, non-adversarial supply chain makes conditional approval likely"

With the move on Tues, shares flat YTD vs 6% decline in the Nasdaq .IXIC, and off ~33% from their 52-week intraday high of $36.86 from Oct 9

Of 4 analysts covering the stock, 3 rate "strong buy" or "buy", 1 "hold"; median PT $36, per LSEG data