Bond.az - Freedom Broker raised its price target on Ooma Inc. shares (NYSE:OOMA) to $20.00 from $18.30 while maintaining a Buy rating.
The firm cited Ooma's first-quarter fiscal 2027 results, which exceeded revenue and adjusted EBITDA estimates. The business segment delivered record performance.
Strong results caught analyst attention. The stock surged 71% over the past six months and 64% year-to-date. Four analysts recently revised earnings estimates upward.
Revenue growth was driven by Ooma Business, with gains from accelerated AirDial adoption, organic user growth, and integration of FluentStream and Phone.com (acquired in late 2025).
The company reported record adjusted EBITDA, supported by higher-margin AirDial installations. Management raised fiscal 2027 guidance, expecting continued AirDial scaling and the launch of Ooma AI service.
Freedom Broker revised its estimates upward following the guidance increase. The firm expects Ooma AI to drive average revenue per user growth.
With a PEG ratio of 0.43, the stock appears attractively valued. Analysis indicates the stock is currently undervalued.
