Oppenheimer Reaffirms Their Buy Rating on Vonage Holdings (VG)


Oppenheimer analyst Timothy Horan maintained a Buy rating on Vonage Holdings (NYSE: VG) today and set a price target of $16. The company’s shares opened today at $13.41.

Horan noted:

“VG announced the acquisition of NewVoiceMedia, the largest pure play cloud contact center company with over 400 employees globally. VG will acquire NewVoiceMedia for an equity price of $350M in cash, financed through a combination of existing revolver capacity, cash on hand and cash on NewVoiceMedia’s balance sheet. At 3.8x ’19E revenues, it appears VG picked up NewVoiceMedia for about half the going rate for SaaS-based businesses. The deal gives VG a premier contact center solution that was previously missing from their UC&C stack. Mid-market and enterprise customers want to simplify their IT, and VG gives them one vendor for UCaaS, CPaaS and contact center. NewVoiceMedia has over 700 customers, mostly mid-market and enterprises.”

According to TipRanks.com, Horan is a top 25 analyst with an average return of 19.0% and a 79.8% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Zayo Group Holdings.

Currently, the analyst consensus on Vonage Holdings is a Strong Buy with an average price target of $16.33, implying a 21.8% upside from current levels. In a report issued on September 10, Craig-Hallum also reiterated a Buy rating on the stock with a $21 price target.

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The company has a one-year high of $14.73 and a one-year low of $7.79. Currently, Vonage Holdings has an average volume of 1.43M.

Based on the recent corporate insider activity of 104 insiders, corporate insider sentiment is negative on the stock. Last month, Stephen Fisher, a Director at VG sold 163,951 shares for a total of $2,184,909.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Vonage Holdings Corp. engages in the provision of communication services through cloud-connected devices. It operates through the Business and Consumer segments.

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