Procore signs multi-year strategic collaboration agreement with AWS
Monday, Ooma, Inc. (NYSE:OOMA) maintained its Market Perform rating from Citizens JMP, as announced by analyst Erik Suppiger. Following a meeting in Atherton, California, with Ooma’s CEO Eric Stang, CFO Shig Hamamatsu, and Director of IR and Corporate Development Matthew Robison, Suppiger reaffirmed the firm’s stance on the company’s stock. According to InvestingPro data, analysts maintain a bullish consensus on the stock, with price targets ranging from $17 to $20.
Suppiger’s reiteration comes after Ooma’s shares have declined by 8% year to date, which compares to a 5% fall in the Russell 3000 index. However, InvestingPro data shows an impressive 51% return over the past year, with the stock currently trading at $12.90, suggesting potential upside based on analyst targets. This performance review takes into account the broader market context and the company’s specific financial journey.
During the March 4 earnings call, Ooma advised caution regarding future outlooks as strategic plans are yet to fully materialize. The company also noted potential risks such as the impact of tariffs on product costs. Despite these concerns, Suppiger pointed out several positive aspects of Ooma’s business that merit attention. InvestingPro analysis reveals that five analysts have recently revised their earnings estimates upward, with net income expected to grow this year.
The analyst highlighted Ooma’s provision of effective solutions across four key segments: cloud communications, POTS (plain old telephone service) replacement, wholesale platform services, and residential telephony. These offerings are tapping into substantial total addressable markets (TAMs), especially in the area of POTS replacement.
Ooma has demonstrated consistent revenue performance, with InvestingPro data showing 8.5% revenue growth and a healthy gross profit margin of 61%. The company operates with moderate debt levels and maintains a solid current ratio of 1.09. While Suppiger noted the company’s modest revenue multiple, investors should note that comprehensive valuation analysis and additional metrics are available through InvestingPro’s detailed research reports, which cover over 1,400 US stocks including Ooma.
Lastly, the leadership of CEO Eric Stang and CFO Shig Hamamatsu, along with the broader Ooma team, was commended by Suppiger, indicating confidence in the company’s management. The analyst emphasized that these factors combined make Ooma’s stock a subject of ongoing interest, despite the current Market Perform rating. With strong financial health metrics and potential upside according to Fair Value calculations, investors seeking detailed analysis can access comprehensive research reports and additional ProTips through InvestingPro’s platform.
In other recent news, Ooma Inc . reported its fourth-quarter fiscal year 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.21, compared to the forecast of $0.14. The company also reported a revenue of $65.1 million, slightly exceeding the anticipated $63.98 million. This positive financial performance reflects Ooma’s strategic focus on cloud communications and POTS replacement solutions. Benchmark analyst Matt Harrigan raised the price target for Ooma to $20.00 from $17.00, maintaining a Buy rating on the company due to its strong earnings and product momentum. Harrigan highlighted the AirDial POTS replacement product as a significant growth driver. The earnings report revealed notable margin improvements, attributed to operating leverage and reductions in research and development spending. For fiscal year 2026, Ooma projects revenue between $267 million and $270 million, with a non-GAAP net income of $22-$23.5 million. The company plans to expand its market reach by adding 2-3 resale partners quarterly.
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