RBBN - Tie A Bow On Ribbon Communications - Stock Could Double
- Ribbon Communications' merger with ECI Telecom last year appears to have been a success.
- Though the stock dropped after the cash-n-stock merger was announced in late 2019, it snapped back nicely in 2H of 2020.
- The company's strong Q4 shows it can generate cash - which should enable it to pay down debt in 2021 and reduce interest expense.
- Negative sentiment toward Chinese networking companies, combined with the Russian cyber-attack on US government computers/networks, are strong tailwinds for Ribbon's products and services.
- Part of Ribbon's business is a SaaS-based software model that should lead to more stable revenue (and growth) as well as higher margins. Ribbon is a BUY and could double by 2022.
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Tie A Bow On Ribbon Communications - Stock Could Double