William Blair analyst Arjun Bhatia has maintained their bullish stance on OOMA stock, giving a Buy rating today.
Arjun Bhatia has given his Buy rating due to a combination of factors including Ooma’s solid financial performance and strategic growth initiatives. The company’s fourth-quarter results slightly exceeded expectations, particularly in terms of operating margin and cash flow, which were significantly ahead of consensus estimates. Despite the fiscal 2026 revenue guidance being lower than anticipated, the strong free cash flow margin and product revenue growth, especially from AirDial installations, demonstrate Ooma’s potential for profitability and expansion.
Additionally, Ooma’s stock is currently trading at a valuation discount compared to its peers in the communications SaaS sector. As Ooma continues to implement its growth strategy, increase its mix of Pro and Pro Plus users, and capitalize on synergies from its acquisition of 2600Hz, there is an expectation that the stock will align more closely with industry valuations. These factors contribute to the positive outlook and justify the Buy rating.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $20.00 price target.
Based on the recent corporate insider activity of 83 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OOMA in relation to earlier this year.