Ooma Shares Shoot Up As Analysts See Up To 52% Upside Post Q2 Beat - Ooma (NYSE:OOMA)

Ooma Inc OOMA reported Q2 revenue of $47.1 million, up 14% year-on-year, beating the analyst consensus of $46.3 million. The adjusted EPS of $0.13 beat the consensus of $0.08.
The smart communications platform sees Q3 revenue of $47.8 million - $48.5 million, above the consensus of $46.7 million. It considers an adjusted EPS of $0.08 - $0.11, above the consensus of $0.07.
Ooma roped in Accuray Inc's ARAY CFO Shig Hamamatsu, as its new Finance Chief effective September 7.
Hamamatsu succeeded the acting CFO Namrata Sabharwal.
Analysts raised their price targets following revenue growth momentum.
JMP Securities analyst Joe Goodwin raised the PT to $27 from $22, implying a 36.8% upside, and reiterated an Outperform.
Goodwin noted that revenue growth accelerated as the business demonstrates solid momentum in its business subscription segment.
Benchmark analyst Matthew Harrigan raised the PT to $30 from $27, signifying a 52.1% upside, and maintained a Buy.
Continued momentum for Microsoft Corp MSFT Office Pro should maintain intermediate ARPU momentum, argues Harrigan, who now models a 5.2% ARPU CAGR through FY30 versus his prior roughly 4% estimate.
B. Riley analyst Josh Nichols raised the PT to $27.50 from $24, indicating a 39.4% upside, and affirmed a Buy.
Nichols noted that Ooma's "higher-value" business revenue is on track to surpass 50% of subscription and services revenue by the end of the current fiscal year while maintaining a 5% EBITDA margin floor.
Price Action: OOMA shares traded higher by 12.87% at $22.27 on the last check Friday.

Market News and Data brought to you by Benzinga APIs