Oppenheimer analyst Timothy Horan maintained a Buy rating on Vonage Holdings (NYSE: VG) today and set a price target of $14. The company’s shares opened today at $11.58, close to its 52-week high of $11.94.
Horan wrote:
“Financial results were in line with Street expectations, but slightly below our aggressive estimates. Consolidated revenue grew by 4.2%, led by business service at 22%, and is now 54% of revenues. Nexmo grew revenue 42% organically which was in line with expectations. The higher mix of business revenue and faster business revenue from better services/go-to-market strategy will drive accelerating business revenue growth, and consumer is stabilizing. Adj. EBITDA grew 14% Y/Y and beat our estimates by 170 bps, on lower operating costs. The Nexmo Platform added 55K registered developers, ending the quarter with 485K total developers on the platform with major transaction in the US. There was some accounting adjustments on specific line items, but did not impact consolidated results.”
According to TipRanks.com, Horan is a top 100 analyst with an average return of 15.5% and a 72.7% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Zayo Group Holdings.
Vonage Holdings has an analyst consensus of Strong Buy, with a price target consensus of $12.50.
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Based on Vonage Holdings’ latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $55.27 million. In comparison, last year the company had a net profit of $5.91 million.
Based on the recent corporate insider activity of 90 insiders, corporate insider sentiment is negative on the stock.
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Vonage Holdings Corp. engages in the provision of communication services through cloud-connected devices. It operates through the Business and Consumer segments.
