B.Riley FBR Sticks to Their Buy Rating for Fusion Telecommunications

By Carrie Williams

In a report released today, Josh Nichols from B.Riley FBR reiterated a Buy rating on Fusion Telecommunications (NASDAQ: FSNN), with a price target of $3. The company’s shares closed yesterday at $2.42.

Nichols wrote:

“We reiterate our $3 PT and Buy rating on Fusion (FSNN). It reported Q3 ’17 results, after the close, on 11/13. Revenue of $36.4MM came in above our $34.0MM estimate and consensus’ $35.5MM, with gross margins of 45.7%, up ~250 bps compared to Q3 of 2016. EBITDA of $4.2MM were up 147% YOY , 13% sequentially, also coming in above our $3.8MM projection, as well as consensus’ $3.9MM. Excluding the Apptix acquisition (acquired in November), Business Services revenue grew 10% organically on a YOY basis, indicating that FSNN is effectively leveraging its market position as enterprises’ single source for the cloud—network plus software. FSNN ended the quarter with 13.3k Business Services customers, up from 13.1k last quarter, which generated total Business Services revenue of $29.3MM, with monthly churn we leave our $15MM 2017 EBITDA estimate unchanged with no adjustments to our 2018 Regarding our model,.”

According to TipRanks.com, Nichols is a 4-star analyst with an average return of 17.1% and a 33.3% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Pointer Telocation Ltd, Immersion Corp, and ID Systems.

Fusion Telecommunications has an analyst consensus of Moderate Buy, with a price target consensus of $4.

The company has a one-year high of $3.57 and a one-year low of $1.11. Currently, Fusion Telecommunications has an average volume of 621.8K.

Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is negative on the stock.

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Fusion Telecommunications International, Inc. engages in the provision of integrated cloud solution to small, medium, and large businesses. It operates through Business Services, and Carrier Services segments. The Business Services segment provides cloud communications, cloud connectivity, cloud storage, and security solutions.