Vonage Holdings (NASDAQ: VG) shares have weakened 3.9% since the beginning of January 2021, and the current share price stands around $12.3. Morgan Stanley maintains an “equal weight†rating on Vonage Holdings with a $13 price target, while J.P Morgan reported that it is still waiting for business improvements.
Fundamental analysis: Morgan Stanley maintains an “equal weight†rating on Vonage Holdings with a $13 price target
Vonage Holdings Corp was founded in 2001 as a provider of residential telecommunications services while today operates as a cloud communications provider. Vonage Holdings shares remain under pressure after some analysts said it might take several quarters to improve tangible business.
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Vonage reported Q4 results in February; total revenue has increased by 4.3% Y/Y to $323M while Q4 GAAP EPS was -$0.06 (missed by $0.05). Total revenue has increased above expectations (beats by $7M) but still not enough, according to some analysts, while adjusted EBITDA was $48M.
“We remain well-positioned with, global scale and a diverse customer set, across the world in multiple industries including health care, education, gaming, social, and virtual events, providing a broad-based balanced growth trajectory. 2021 will be a year of execution and targeted growth as we further invest in our product development and a tailored go-to-market so we can provide our customers with the communication solutions that best fit their need and win a disproportional share of the market,†said Rory Read, Chief Executive Officer of Vonage.
J.P Morgan downgraded Vonage Holdings from “buy†to “hold†last month and assigned a price target of $13.5. J.P Morgan reported that it is still waiting for improvements after some weak execution in the past.
Morgan Stanley maintains an “equal weight†rating on Vonage Holdings with a $13 price target. This stock is still risky, Vonage has a relatively large debt of $506M, and maybe it is not the right moment for investing in shares of this company.
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Technical analysis: Vonage Holdings shares continue to trade above the $12 support level
Vonage Holdings shares are currently trading above the $12 support level, and if the price jumps again above $13, it would be a signal to trade shares, and the next target could be around $14. On the other side, if the price falls below the $11 support level, it would be a firm “sell†signal, and the next target could be around $10.
Summary
Vonage Holdings shares remain under pressure after some analysts said it might take several quarters to improve tangible business. Morgan Stanley maintains an “equal weight†rating on Vonage Holdings with a $13 price target, and maybe it is not the right moment for investing in shares of this company.
