Oppenheimer Remains a Buy on Vonage Holdings (VG)


In a report released today, Timothy Horan from Oppenheimer maintained a Buy rating on Vonage Holdings (VG), with a price target of $14. The company’s shares closed yesterday at $10.19.

Horan said:

“Consolidated revenue of $273.8M, with consumer growing in-line but business 160 bps below at 19% growth. Adj. EBITDA margins missed slightly by 40 bps, on lower gross margins. Sales and Marketing ticked up to 30% of revenues in the quarter, as VG invests in its mid-market and enterprise sales team. VG’s two recent acquisitions (NewVoiceMedia and Tokbox), should help it appeal to larger customers with its unique set of CPaaS services and products. Registered developers on Nexmo increased to 735K in the quarter, up 696K, a nice sequential improvement. VG saw business service revenues from customers with $10K+ in monthly recurring revenue increase 40% Y/Y, and signed seven deals in 4Q18 with TCV greater than $1M. Guidance is a bit low.”

According to TipRanks.com, Horan is a top 100 analyst with an average return of 15.7% and a 72.8% success rate. Horan covers the Technology sector, focusing on stocks such as Zayo Group Holdings, Limelight Networks, and CenturyLink Inc.

Vonage Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $14.

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Based on Vonage Holdings’ latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $9.59 million. In comparison, last year the company had a GAAP net loss of $55.27 million.

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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.