William Blair Thinks Ribbon Communications Inc’s Stock is Going to Recover

By Ryan Adsit

William Blair analyst Dmitry Netis reiterated a Buy rating on Ribbon Communications Inc (NASDAQ: RBBN) today. The company’s shares opened today at $5.82, close to its 52-week low of $5.25.

Netis said:

“We note that the stock has been a victim of a thin float and what we believe is largely machine-driven buying and selling, in the technical range of between $6.50 and $8.50 per share. The stock broke all technical indicators after the last quarter’s results—which, judging by the investor reaction, were perceived as troubling—sending it well below $6.00 per share and its 50-day moving average. We, to the contrary , saw no glaringly surprising issues from the earnings report, and would advocate investors to double down here.”

According to TipRanks.com, Netis is a 4-star analyst with an average return of 9.5% and a 57.0% success rate. Netis covers the Consumer Goods sector, focusing on stocks such as Acacia Communications, Juniper Networks, and Arista Networks.

Currently, the analyst consensus on Ribbon Communications Inc is Moderate Buy and the average price target is $7, representing a 20.3% upside.

In a report issued on March 2, Northland Securities also reiterated a Buy rating on the stock with a $9 price target.

Based on Ribbon Communications Inc’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $146 million and GAAP net loss of $15.71 million. In comparison, last year the company earned revenue of $67.57 million and had a GAAP net loss of $2.63 million.

Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RBBN in relation to earlier this year.

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Ribbon Communications, Inc. offers session initiation protocol and long term evolution -based solutions, including voice over Internet protocol, voice over wireless fiber, video and unified communications to communications service providers and enterprises. Its products include portfolio of hardware based and virtualized session border controllers, diameter signaling controllers, policy and routing servers, media and signaling gateways, and mobility solutions, which can be deployed on-premises, in virtual environments, and in public and private clouds. The company was founded on May 19, 2017 and is headquartered in Westford, MA.