RBBN - Ribbon Communications tags five-month high as WestPark upgrades to Buy
- Ribbon Communications ( NASDAQ: RBBN ) rose 3.7% and matched a five-month high Monday alongside an upgrade to Buy from Hold at WestPark Capital.
- Trading volume at midday had nearly surpassed average full-day volume of just over 623,000 shares.
- Analyst Greg Mesniaeff expects a positive impact on gross margin this year from improvements in Ribbon's supply-chain economics, "together with a more normal equipment pricing environment lacking Huawei’s discounting bias."
- Operating margins meanwhile should benefit from some cuts to operating expenditures implemented last year, he noted.
- And though fundamentals have been getting stronger at the company, Ribbon still trades at a steep discount to carrier networking peers, he said.
- He has a $6 price target, now implying 78% upside.
For further details see:
Ribbon Communications tags five-month high as WestPark upgrades to Buy