On May 28, Benchmark analyst Matt Harrigan reaffirmed his stable Buy rating for Ooma Inc. (NYSE:OOMA) while maintaining a price target of $20. The analyst highlighted the company’s robust product line, particularly the AirDial POTS (Plain Old Telephone Service) replacement solution, as a key factor in its continued progress.
Harrigan stressed that the AirDial device meets a significant market demand, since more than 20 million POTS lines in North America urgently require an upgrade to prevent cost increases and possible safety hazards. He expects Ooma Inc. to continue to experience gains in margins as a result of operational leverage, including lower costs for R&D.
Harrigan added that if the current upward trends continue, there may be more potential for the stock. He noted AirDial’s impressive performance as a key growth driver and proposed that the company’s valuation potential could be improve by exceeding existing estimates for Adjusted EBITDA margins.
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