Northland Securities analyst Michael Latimore maintained a Buy rating on Vonage Holdings (VG) today and set a price target of $18. The company’s shares closed yesterday at $11.71.
Latimore wrote:
“We believe Vonage has a comprehensive platform now and does not need to make major acquisitions in the near term. Key Points Issue Details. Last week Vonage announced a $300 mil 1.75% convertible note due 2024. The notes will have semi-annual interest due June 1 and Dec 1 beginning Dec 2019 and will mature in June 2024. The conversion rate is fixed at about 59.8256 shares per $1,000 principal amount of notes, which implies a conversion price of about $16.72 per share, about 40% premium to current market price. Net proceeds are about $291.5 mil (or $335.4 mil including $45 mil 30-day option). Vonage is also doing a capped call transaction, which moves the effective conversion price to $23.46. Use of Proceeds.”
According to TipRanks.com, Latimore is a 5-star analyst with an average return of 12.6% and a 54.6% success rate. Latimore covers the Technology sector, focusing on stocks such as Super League Gaming Inc, The Meet Group Inc, and Brightcove Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Vonage Holdings with a $16 average price target.
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Vonage Holdings’ market cap is currently $2.84B and has a P/E ratio of 280.82. The company has a Price to Book ratio of 5.35.
Based on the recent corporate insider activity of 87 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.
