Oppenheimer analyst Timothy Horan maintained a Buy rating on Vonage Holdings (VG) today and set a price target of $14. The company’s shares closed yesterday at $10.45.
Horan said:
“Consolidated revenue beat our ests. by 60 bps, and EBITDA margins were a slight 50 bps miss vs. our estimate, but a 25% YOY decline as the company invests in sales and its one network platform to accelerate growth. Gross margin increased 30 bps sequentially to 59.4%. UCaaS saw a slight tick up in growth to 13%, with Nexmo in line with recent trends at 42%. VG’s two recent acquisitions (NewVoiceMedia and Tokbox), should help it appeal to larger customers with its unique set of CPaaS services. VG business revenues are now 65% of revenues and growing 23%, and accelerating, helped by innovative new services—CX CPaaS offerings. Full year guidance was maintained.”
According to TipRanks.com, Horan is a top 25 analyst with an average return of 17.3% and a 76.5% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Limelight Networks.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Vonage Holdings with a $14 average price target, representing a 34.0% upside. In a report issued on April 24, Stephens also reiterated a Buy rating on the stock.
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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 $6.94 million. In comparison, last year the company had a net profit of $24.52 million.
Based on the recent corporate insider activity of 90 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of VG in relation to earlier this year.
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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.
