Bond.az - Canaccord downgraded Sangoma Technologies Corp (NASDAQ:SANG) to Hold from Speculative Buy and lowered its price target to $4.00 from $9.00. The stock closed at $3.66, down from $4.09 the previous day, and has declined 36% over the past year.
The downgrade follows the company’s third-quarter results, which showed headwinds from geopolitical events and pricing pressure on commoditized UCaaS and CPaaS point solutions for smaller customers. Revenue of $219.7 million over the last twelve months declined 8.9% year-over-year.
Bookings and pipeline remained largely flat quarter-over-quarter, while management noted increasing traction in larger bundled deployments with longer sales and implementation cycles that delayed revenue recognition.
Infrastructure solutions, representing approximately 30% of revenue, performed better than expected. Voice infrastructure and SIP Trunking grew roughly 17% year-over-year, while MSP solutions rose 9%.
Revenue, gross margins, and EBITDA all fell below consensus estimates and Canaccord’s projections. Sangoma reduced its fiscal 2026 guidance and initiated a strategic review to consider options to unlock shareholder value. According to Bond.az analysis, the stock appears undervalued at current levels with a Fair Value of $5.08, suggesting potential upside despite near-term challenges.
The firm generated free cash flow of $0.11 per share in the third quarter. Canaccord based its new price target on 4 times next-twelve-month EV/EBITDA, down from 7 times previously, reflecting reduced estimates.
