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Investing.com - Citizens has reiterated its Market Outperform rating on Ribbon Communications (NASDAQ:RBBN) with a price target of $6.00, representing a 95% upside from the current price of $3.08. According to InvestingPro data, the stock is currently trading near its 52-week low of $2.94, suggesting potential value for investors aligned with Citizens’ bullish outlook.
The research firm cited several fundamental aspects expected to fuel long-term upside in the stock, including Ribbon’s product suite positioned to benefit from global 5G initiatives, generative AI increasing network traffic, and U.S. government incentives for network modernization. While InvestingPro data shows the company wasn’t profitable over the last twelve months, analysts forecast earnings of $0.18 per share for fiscal year 2025, supporting Citizens’ optimistic view.
Citizens highlighted Ribbon’s profitable Cloud and Edge business as a springboard for growth, along with the company’s significant market opportunity exceeding $10 billion in serviceable addressable market.
The firm also pointed to Ribbon’s international strength as a positive factor in its investment thesis for the communications technology provider.
Strong industry tailwinds from the elimination of legacy copper networks and continued adoption of cloud technologies were identified as additional factors that position Ribbon Communications favorably in the market.
In other recent news, Ribbon Communications announced its third-quarter 2025 financial results, revealing a revenue of $215.4 million, which marks a 2% increase from the previous year but falls short of the consensus estimate of $220.1 million. The company’s adjusted EBITDA came in at $28.9 million, representing a 3% year-over-year decrease and falling below the consensus of $31.3 million. Additionally, Ribbon Communications reported a non-GAAP EPS of $0.04, missing the forecasted $0.06, resulting in a 33.33% negative earnings surprise. Despite these figures, Citizens has reiterated its Market Outperform rating for Ribbon Communications, maintaining a price target of $6.00. This rating suggests optimism from Citizens regarding Ribbon’s future performance. These developments offer critical insights for investors monitoring Ribbon Communications’ financial health and market position.
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