Needham & Company Starts Vonage (VG) at Buy

Needham & Company initiates coverage on Vonage (NYSE: VG) with a Buy rating and a price target of $6.00.

Analyst Richard Valera commented, "Vonage is a leading player in the high growth Unified Communications as a Service, or UCaaS, market. Through a series of well executed acquisitions--and by leveraging the Vonage brand--the company has become the second largest independent UCaaS provider, with a business growing 20%+ organically and a healthy pipeline of potential acquisitions. Vonage also has its legacy Consumer VoIP business, which we see as a strong source of cash flow over the next several years. Recent concerns regarding increased focus on UCaaS by Microsoft and Cisco have put pressure on the UCaaS space, and driven VG shares down ~30% from their recent highs. While not dismissive of these concerns, we view the price correction as compensating for this risk. We initiate coverage of VG with Buy rating and sum-of-parts based PT of $6.00."

For an analyst ratings summary and ratings history on Vonage click here. For more ratings news on Vonage click here.

Shares of Vonage closed at $4.60 yesterday.

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