Avaya (NYSE:AVYA) Receives Buy Rating from Northland Securities

Share on StockTwits

Northland Securities restated their buy rating on shares of Avaya (NYSE:AVYA) in a research note issued to investors on Wednesday, AnalystRatings.com reports. They currently have a $21.00 price target on the stock.

“We think the idea of going private to facilitate and accelerate the migration to cloud makes sense. Won two of the largest deals in company history. Key Points Results. Non-GAAP rev of $720 mil, $35 mil lower than 3Q18 and above our $711 mil est and $716 mil consensus. Good execution in the midst of the public strategic review helped. Product rev of $298 mil, down 7.5% y/y, v. our $287 mil est. New phones aided 3Q. Service rev of $422 mil, down 2.5% y/y, vs. our $424 mil est. Cloud revenue was 11% of revenue, same as the last two quarters. Maintenance was stable seq. Non-GAAP gross margin of 60.6% v. 61.5% in 2Q, affected temporarily by one German customer in particular. EBITDA of $167 mil v. our $161 mil est. Cash of $729 mil and debt $3.7 bil including pension obligation.”,” Northland Securities’ analyst commented.

Several other research analysts have also recently weighed in on AVYA. Zacks Investment Research raised shares of Avaya from a strong sell rating to a hold rating in a research report on Wednesday, July 10th. Citigroup set a $12.00 price target on shares of Avaya and gave the company a hold rating in a research report on Monday, July 8th. Finally, BWS Financial lowered their price target on shares of Avaya from $32.00 to $22.00 and set a hold rating on the stock in a research report on Friday, May 10th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the company’s stock. The company has an average rating of Hold and a consensus target price of $18.88.

Shares of AVYA opened at $12.52 on Wednesday. Avaya has a 52-week low of $10.23 and a 52-week high of $23.40. The company has a quick ratio of 1.31, a current ratio of 1.41 and a debt-to-equity ratio of 2.10. The firm’s fifty day moving average is $11.27 and its two-hundred day moving average is $14.44. The stock has a market cap of $1.34 billion, a PE ratio of 4.50 and a beta of 1.70.

Avaya (NYSE:AVYA) last announced its earnings results on Tuesday, August 13th. The company reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.61 by ($0.37). Avaya had a positive return on equity of 15.31% and a negative net margin of 12.73%. The business had revenue of $720.00 million for the quarter, compared to analyst estimates of $715.96 million. During the same period last year, the firm earned ($0.80) EPS. The company’s revenue for the quarter was down 4.6% compared to the same quarter last year. As a group, research analysts anticipate that Avaya will post 3.36 earnings per share for the current year.

Several hedge funds have recently made changes to their positions in the company. Public Employees Retirement System of Ohio boosted its position in shares of Avaya by 57.8% during the 4th quarter. Public Employees Retirement System of Ohio now owns 3,363 shares of the company’s stock valued at $49,000 after acquiring an additional 1,232 shares during the last quarter. Legal & General Group Plc boosted its position in shares of Avaya by 7.2% during the 4th quarter. Legal & General Group Plc now owns 43,331 shares of the company’s stock valued at $631,000 after acquiring an additional 2,912 shares during the last quarter. Bank of New York Mellon Corp boosted its position in shares of Avaya by 0.7% during the 2nd quarter. Bank of New York Mellon Corp now owns 497,199 shares of the company’s stock valued at $5,922,000 after acquiring an additional 3,505 shares during the last quarter. AEGON USA Investment Management LLC boosted its position in shares of Avaya by 2.4% during the 2nd quarter. AEGON USA Investment Management LLC now owns 172,284 shares of the company’s stock valued at $2,052,000 after acquiring an additional 4,100 shares during the last quarter. Finally, Swiss National Bank boosted its position in shares of Avaya by 2.7% during the 2nd quarter. Swiss National Bank now owns 205,900 shares of the company’s stock valued at $2,452,000 after acquiring an additional 5,500 shares during the last quarter. 99.56% of the stock is currently owned by hedge funds and other institutional investors.

Avaya Company Profile

Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The company operates through two segments, Products & Solutions, and Services. The Products & Solutions segment offers unified communications and contact center platforms, applications, and devices.

Featured Story: Green Investing

Analyst Recommendations for Avaya (NYSE:AVYA)

Receive News & Ratings for Avaya Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Avaya and related companies with MarketBeat.com's FREE daily email newsletter.