William Blair Keeps Their Buy Rating on Vonage Holdings

By Ryan Adsit

In a report issued on May 15, Dmitry Netis from William Blair maintained a Buy rating on Vonage Holdings (NYSE: VG). The company’s shares closed yesterday at $11.28, close to its 52-week high of $11.94.

Netis wrote:

“We are not surprised by the move. While Mr . Gilvar brought excellence to the marketing function at Vonage, his background is predominantly in consumer marketing. We suspect the company will seek a replacement as it transitions entirely to the business side and drives its Vonage Business Cloud (VBC) platform approach forward. The company has revamped the entire vonage.com website recently to direct visitors strictly to Vonage Business, showing off its SMB/midsize (VBC) and enterprise platforms (Vonage Enterprise) along with significant collateral for channel partners/V ARs. An external CMO candidate with first-hand experience on B2B, cloud, and SaaS would not be out of the realm of possibility , in our view . This move would ultimately accentuate Vonage’s platform approach and more importantly its UCaaS growth.”

According to TipRanks.com, Netis is a 4-star analyst with an average return of 8.3% and a 53.4% success rate. Netis covers the Consumer Goods sector, focusing on stocks such as Ribbon Communications Inc, Acacia Communications, and Juniper Networks.

Currently, the analyst consensus on Vonage Holdings is Strong Buy and the average price target is $12.50, representing a 10.8% upside.

In a report issued on May 8, Oppenheimer also assigned a Buy rating to the stock with a $14 price target.

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Based on Vonage Holdings’ latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $24.52 million. In comparison, last year the company had a net profit of $5.91 million.

Based on the recent corporate insider activity of 89 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.