William Blair analyst Arjun Bhatia has maintained their bullish stance on OOMA stock, giving a Buy rating today.
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Arjun Bhatia has given his Buy rating due to a combination of factors, including Ooma’s consistent revenue growth and better-than-expected operating margins. Despite the slight miss in fourth-quarter revenue guidance, largely attributed to temporary AirDial installation delays, Bhatia remains optimistic about the future ramp-up of AirDial through fiscal 2027. The acquisition of FluentStream is also seen as a positive development, expanding Ooma’s presence in the SMB market and contributing to inorganic revenue growth.
Furthermore, Bhatia notes that Ooma’s shares are trading in line with the median of its communication SaaS peers, suggesting potential for the stock to appreciate as the company continues to execute its growth strategy. The expected synergies from recent acquisitions, alongside the anticipated increase in Pro and Pro Plus users and AirDial revenue, support the Buy rating. Overall, these factors contribute to a positive outlook for Ooma’s stock performance.
In another report released today, B. Riley Securities also maintained a Buy rating on the stock with a $18.50 price target.