Avaya Holdings Corp (AVYA) Receives a Buy from Northland Securities

By Ryan Adsit

In a report released today, Michael Latimore from Northland Securities maintained a Buy rating on Avaya Holdings Corp (AVYAResearch Report), with a price target of $21. The company’s shares closed last Monday at $11.80, close to its 52-week low of $10.23.

Latimore observed:

“We think the idea of going private to facilitate and accelerate the migration to cloud makes sense. Won two of the largest deals in company history. Key Points Results. Non-GAAP rev of $720 mil, $35 mil lower than 3Q18 and above our $711 mil est and $716 mil consensus. Good execution in the midst of the public strategic review helped. Product rev of $298 mil, down 7.5% y/y, v. our $287 mil est. New phones aided 3Q. Service rev of $422 mil, down 2.5% y/y, vs. our $424 mil est. Cloud revenue was 11% of revenue, same as the last two quarters. Maintenance was stable seq. Non-GAAP gross margin of 60.6% v. 61.5% in 2Q, affected temporarily by one German customer in particular. EBITDA of $167 mil v. our $161 mil est. Cash of $729 mil and debt $3.7 bil including pension obligation.”

According to TipRanks.com, Latimore is a 5-star analyst with an average return of 10.8% and a 53.0% success rate. Latimore covers the Technology sector, focusing on stocks such as Super League Gaming Inc, The Meet Group Inc, and Brightcove Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Avaya Holdings Corp with a $16.33 average price target.

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The company has a one-year high of $23.40 and a one-year low of $10.23. Currently, Avaya Holdings Corp has an average volume of 1.25M.

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Avaya Holdings Corp. is a global business communications company, which engages in the provision of business collaboration and communication solutions. It operates through the Global Communications Solutions (GCS) and Avaya Global Services (AGS) segments. The GCS segment develops, markets, and sells contact center and unified communications products.