In a report released Tuesday, Lake Street Capital Markets analyst Eric Martinuzzi downgraded Alteva ALTV from Buy to Hold, and reduced its price target from $12 to $7.
Analysts at Lake Street are concerned about Alteva's average revenue per user mildly decreasing, despite Unified Communications revenue up 27 percent year over year. Lake Street is confident in Alteva's full year outlook with its effort to reach out to sub-agents such as Master Agents. The firm does not think the company will be able to meet its 18 percent growth projection for 2015, leading to the firm's downgrade.
The $7 price target comes from a 1.0x EV/Revenue multiple from Lake Street's Unified Communications 2015 revenue estimate of $20.4 million.
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