Ribbon Communications stock rating reiterated at Market Outperform by Citizens

Published 23/10/2025, 10:08
Ribbon Communications stock rating reiterated at Market Outperform by Citizens

Investing.com - Citizens has reiterated its Market Outperform rating on Ribbon Communications (NASDAQ:RBBN) with a price target of $6.00 following the company’s third-quarter 2025 results. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $6.00 to $6.50, suggesting significant upside potential.

Ribbon Communications reported revenue of $215.4 million for the third quarter, representing a 2% year-over-year increase, slightly below the consensus estimate of $220.1 million. The company’s adjusted EBITDA was $28.9 million, down 3% year-over-year and below the consensus of $31.3 million. The company maintains a Fair overall financial health score according to InvestingPro analysis, with particularly strong growth metrics.

Citizens noted that the quarter was affected by federal timing uncertainty but maintained that the company’s fundamentals remain intact as these headwinds are expected to abate.

The research firm highlighted that Ribbon Communications continues to benefit from an increasing number of voice modernization projects, promising early indications of federal program funding, and differentiated new product initiatives supporting a vision for autonomous networking.

Ribbon Communications stock has declined approximately 12.8% year-to-date based on after-hours pricing, underperforming the Russell 3000 index, which has gained about 13.0% during the same period. The company’s market capitalization stands at $708 million, with a beta of 1.36 indicating higher volatility than the broader market.

In other recent news, Ribbon Communications reported its Q3 2025 earnings, which did not meet analyst expectations. The company announced a non-GAAP earnings per share (EPS) of $0.04, falling short of the anticipated $0.06. This resulted in a negative earnings surprise of 33.33%. Additionally, Ribbon Communications reported revenue of $215 million, which was slightly below the forecasted $220.04 million. These results have drawn attention from investors and analysts alike. The earnings miss and revenue shortfall are significant for stakeholders monitoring the company’s financial health. Analyst firms may review these outcomes for potential stock rating adjustments. The earnings report reflects the company’s recent performance and market conditions. Investors will be keen to see how Ribbon Communications addresses these challenges moving forward.

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