In a report released today, Timothy Horan from Oppenheimer maintained a Buy rating on Vonage Holdings (NYSE: VG), with a price target of $17. The company’s shares opened today at $12.97.
Horan wrote:
“Consolidated revenue of $261.5M missed by 150 bps as both consumer and business came in lower than estimates. Adj. EBITDA margins missed on higher operating costs (engineering & development and G&A), but VG appears to have a good measure of control over these costs and is focusing on enabling growth at this point. Positively, gross margins beat by 110bps. Business revenue grew 4% sequentially, which is solid, and we believe fundamentals are healthy in UCaaS/CPaaS. The development of a single communications platform (UCaaS/CPaaS) that offers a fully programmable business solution should help VG sell up market to larger customers. VG announced the acquisition of the quarter, which brings a premier cloud contact center that was previously missing from their UC&C stack.”
According to TipRanks.com, Horan is a top 25 analyst with an average return of 17.0% and a 73.0% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Zayo Group Holdings.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Vonage Holdings with a $20 average price target.
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Based on Vonage Holdings’ latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $8.56 million. In comparison, last year the company had a net profit of $10.6 million.
Based on the recent corporate insider activity of 104 insiders, corporate insider sentiment is negative on the stock. Most recently, in August 2018, Stephen Fisher, a Director at VG sold 163,951 shares for a total of $2,184,909.
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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.
