Summit Sees Interactive Intelligence As 'A First Mover In Customer Service'

• In a report issued Monday, analysts at Summit Research initiated coverage on shares of Interactive Intelligence Group Inc ININ with a Buy rating and a $41 price target.
• The experts classified the company as a “first mover in customer service” and a “differentiated cloud service provider.”

In a recent report, Summit Research analysts initiated coverage on shares of Interactive Intelligence Group with a Buy rating and $41 price target. The note pointed out the company’s status as an pioneer in the ~$5 billion contact center market, where it has “long established itself in the premise side of the market and has entered the high growth cloud side including recently the multi-tenant segment.”

With more than 6,000 customer deployments around the world, Interactive Intelligence has been growing at roughly 40 percent CAGR in the cloud, taking share from larger players in the space like Cisco Systems, Inc. CSCO and Avaya.

Over the same period, the cloud market as a whole grew 14.3 percent, the experts noted, classifying the growth as “impressive,” and assuring they expect the company to continue to grow at high rates in the cloud, while falling less than market in premise.

In addition to its narrow –but defensible- competitive moat and differentiated products, the analysts said they like Interactive Intelligence’s “creative marketing, expansion strategy into adjacent markets and segments, ability to execute, and high degree of recurring revenue (driven by cloud growth).” All of this provides support for robust and consistent growth, they concluded.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.