VG stock closed up 5% on November 5, 2021, after the company received bullish analyst comments.
VG stock upgraded to Overweight from Neutral at JPMorgan
On November 5, 2021, JPMorgan analyst Sterling Auty upgraded VG stock to Overweight from Neutral with a price target of $26, up from $16. The analyst cites the company’s “continued acceleration” for the upgrade. Vonage is halfway into its three-year transformation process, but the Q3 report suggest that it is running ahead of schedule, Auty tells investors in a research note. Meanwhile, the shares are still trading at a “significant discount to peers,” says the analyst. This discount coupled with improving fundamentals underpin Auty’s belief that Vonage “will continue to see outsized performance going forward.”
VG stock price target raised to $17 from $15 at Jefferies
On November 4, 2021, Jefferies analyst Samad Samana raised the firm’s price target on VG stock to $17 from $15 and keeps a Hold rating on the shares after Q3 results the analyst calls “strong across the board.” Samana, who is “encouraged by the progress” at Vonage, notes that the 2021 revenue guidance midpoint for VCP was raised by more than the $10M beat for the segment that was seen in Q3.
Vonage Reports Third Quarter 2021 Financial Results
On November 4, 2021, Vonage Holdings Corp. (Nasdaq: VG), a global leader in cloud communications helping businesses accelerate their digital transformation, announced results for the quarter ended September 30, 2021.
Vonage reported Q3 adjusted EPS of 4c which was inline with consensus estimates. The company reported Q3 revenue of $358M versus the consensus estimate of $347.39M.
“We had another strong quarter of results across the Vonage Communications Platform driven by disciplined go-to-market execution, increased product innovation delivery and continued demand from new and existing customers,” said Rory Read, Chief Executive Officer. “This is reflected in VCP service revenue increasing 25% year over year led by API revenue growing at 43% and Unified Communications and Contact Center again beating expectations and on track for double digit growth in early 2022.” Read continued, “We are seeing customers across all industries increasingly choose Vonage to help them digitally transform their customer communications and engagement solutions as companies continue to embrace hybrid work, develop disruptive solutions and expand communication channels. We believe Vonage is well positioned to continue to execute our business plan and deliver on our commitments to customers and shareholders.”
Vonage initiated with an Overweight at Barclays
On October 20, 2021, Barclays analyst Ryan MacWilliams initiated coverage of Vonage with an Overweight rating and $20 price target. The stock has returned to 2018 highs after strong API segment performance and improving profitability, the analyst tells investors in a research note. MacWilliams adds however that while Vonage API is the main business driver and area of investor attention for the company, its “impressive” 40% CAGR has been offset by lower than market growth rates for the UCaaS/CCaaS business and double-digit revenue declines from Vonage’s legacy Consumer VoIP segment.
VG stock technical analysis
Both the short-term and long-term trends are positive. This is a very positive sign. We also see a cluster of Pocket Pivots that recently occurred. Although VG has an excellent technical rating, it does not offer a high-quality setup at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when VG stock is a good entry.