Analysts Offer Insights on Technology Companies: Ooma (NYSE: OOMA) and Monotype (NASDAQ: TYPE)

By Ryan Adsit

Analysts have been eager to weigh in on the Technology sector with new ratings on Ooma (OOMAResearch Report) and Monotype (TYPEResearch Report).

Ooma (OOMA)

In a report released today, Josh Nichols from B.Riley FBR maintained a Buy rating on Ooma, with a price target of $20.50. The company’s shares closed on Friday at $11.95.

Nichols said:

“We are adding Buy-rated OOMA Inc. (OOMA, $20.50 and replacing TeleNav (TNAV – Buy, $9.50 PT), which is up over 114% YTD relative to the Russell 2000’s increase of 14.8%, although we still believe TNAV has room for multiple expansion on the back of improving fundamentals and GM’s embedded connected navigation ramp. Meanwhile, OOMA shares are down over 13.9% YTD, despite delivering F1Q20 (Apr) results that beat our expectations with a favorable mix of higher-ARPU business subscribers. Core subscribers recently passed the 1M milestone, with Ooma Business (Office and Enterprise) subscription revenue increasing 45% and we believe business revenue could account for over 50% of revenue in less than three years, based on the current growth trajectory.”

According to TipRanks.com, Nichols is a 4-star analyst with an average return of 14.8% and a 43.4% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Pointer Telocation Ltd, and Immersion Corp.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Ooma with a $19.25 average price target.

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Monotype (TYPE)

In a report released today, Zach Cummins from B.Riley FBR maintained a Hold rating on Monotype, with a price target of $17.50. The company’s shares closed on Friday at $16.73.

Cummins commented:

“Monotype Imaging Holdings (TYPE) reports 2Q19 results before the market opens on and will host its quarterly earnings call at 8:30AM EST (Dial-in: 855.312.5713; Passcode: 8552399). We expect results will rebound from the disappointing 1Q19 results and should meet Street expectations, which are generally consistent with our model and near the midpoint of management’s guidance. The enterprise sales group within the Creative Professional (CP) segment, which was approximately flat Y/Y in 1Q19 due to some delayed deal closings, should improve in 2Q as most of the previously delayed deals have since closed. While the CP segment should return to Y/Y growth, we anticipate another challenging quarter for the OEM segment due to ongoing headwinds created by declining printer volumes.”

According to TipRanks.com, Cummins has currently no stars on a ranking scale of 0-5 stars, with an average return of -12.6% and a 31.7% success rate. Cummins covers the Technology sector, focusing on stocks such as ServiceSource International Inc, American Software, and ChannelAdvisor.

The word on The Street in general, suggests a Hold analyst consensus rating for Monotype with a $17.50 average price target.

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