Vonage Holdings (VG) Receives a Buy from Northland Securities


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 on Friday at $12.61.

Latimore wrote:

“We review API/CPaaS list pricing quarterly. In 2Q Vonage/Nexmo raised list prices on 7 of the 9 services we track. This is the largest increase of any API/CPaaS provider we have monitored over the past 12 quarters. We view this data point as likely positive for trends in Vonage’s Nexmo business. We are comfortable with our $73 million API/CPaaS estimate for consensus is $71 million. VG is attractive with the CSaaS/ VBS segment overall getting only a 3.5x FY20 rev multiple. Key Points Price Increase. We track pricing for nine core API/CPaaS services across several key vendors, and have been doing so over the past 12 quarters. Of the nine services, six are in messaging and three voice. Current Vonage/ Nexmo pricing is higher on seven of the nine services tracked relative to March levels.”

According to TipRanks.com, Latimore is a 5-star analyst with an average return of 13.1% and a 58.5% success rate. Latimore covers the Technology sector, focusing on stocks such as Super League Gaming Inc, The Meet Group Inc, and Brightcove Inc.

Vonage Holdings has an analyst consensus of Strong Buy, with a price target consensus of $16, representing a 26.9% upside. In a report issued on June 27, Stephens also assigned a Buy rating to the stock with a $17 price target.

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Vonage Holdings’ market cap is currently $3.06B and has a P/E ratio of 302.40. The company has a Price to Book ratio of 5.77.

Based on the recent corporate insider activity of 79 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.

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