Sangoma Technologies, the Technology sector company, was revisited by a Wall Street analyst on May 7. Analyst from TD Cowen maintained a Buy rating on the stock and has a C$10.00 price target.
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analyst has given his Buy rating due to a combination of factors that point to a stronger and more durable growth outlook for Sangoma Technologies. Services revenue has resumed both sequential and annual growth after a long pause, supported by sharply higher subscription bookings, healthier pipelines, and very low churn, all of which suggest momentum in larger bundled deals and improved go-to-market execution.
At the same time, profitability is set to improve, with adjusted EBITDA margins expected to expand as cost optimization, system migrations, and the divestiture of a lower-margin business take hold. Management’s tightened guidance, strong free cash flow, and declining leverage enhance financial flexibility, positioning the company to pursue strategically focused M&A while the shares trade near 52-week lows, creating an appealing risk-reward profile for investors.
STC’s price has also changed moderately for the past six months – from C$6.950 to C$5.720, which is a -17.70% drop .