Vonage (VG) Stock Advancing, Baird Initiates Coverage

NEW YORK (TheStreet) -- Shares of Vonage (VG) were gaining in mid-afternoon trading on Wednesday as Baird began coverage of the stock with an "outperform" rating, the Fly reports.

The firm established an $8 price target on shares of the Holmdel, NJ-based provider of cloud communications services for businesses and consumers.

Baird is positive on the company's unified communications as a service (UCaaS) and communications platform as a service (CPaaS) growth opportunities, the Fly reports.

The firm also cited strong consumer cash flow and an attractive sum-of-the-parts valuation.

Separately, Vonage launched a next-generation voice API today through its recently acquired communications platform Nexmo.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.

The team believes its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: VG