Needham analyst Joshua Reilly maintained a Buy rating on Audiocodes (AUDC – Research Report) today and set a price target of $12.50.
Joshua Reilly has given his Buy rating due to a combination of factors that highlight AudioCodes’ strategic positioning in the market. The company is well-placed to leverage the Microsoft Teams Voice ecosystem, thanks to its strong competitive stance in Session Border Controllers (SBCs) tailored for these users. Additionally, AudioCodes is expanding its product offerings by introducing new solutions in Conversational AI, which complements its existing portfolio and opens up cross-selling opportunities.
Furthermore, the transition of customers to a subscription model is expected to reduce revenue volatility and improve profit margins, as more clients opt for software-centric SBC solutions over hybrid appliance deployments. Although the overall growth of Teams users has decelerated, the segment of Public Switched Telephone Network (PSTN) users is anticipated to expand. This growth is driven by the migration of customers from traditional phone systems to Teams Voice with PSTN add-ons, reinforcing AudioCodes’ potential for sustained growth.
According to TipRanks, Reilly is a 3-star analyst with an average return of 2.6% and a 44.55% success rate. Reilly covers the Technology sector, focusing on stocks such as AudioEye, Asure, and Digimarc.