UPDATE: Oppenheimer Raises PT on AudioCodes on Multiple Positive Factors

In a report published Thursday, Oppenheimer analyst Andrew Uerkwitz reiterated an Outperform rating on AudioCodes Ltd. (NASDAQ: AUDC), and raised the price target from $5.00 to $7.00.

In the report, Oppenheimer noted, “We raise our price target to $7 from $5 for the following reasons: 1) we expect voice-related Lync adoptions rates to accelerate into 2014; 2) visibility and backlog are growing; 3) we expect operating margin to meaningfully start expanding in 2014; 4) One Voice for Lync opportunity is just in its infancy; and 5) potential longer-term M&A. Put together, we believe AUDC strategy is an effective one and solid execution could bring multiple expansion. We do believe the stock has run a bit ahead of itself and we'd be buyers on any pullbacks. Our new $7 price target is based on 1.6x EV/sales on our 2014 estimates. Reiterate Outperform.”

AudioCodes Ltd. closed on Thursday at $6.23.