Sangoma Technologies upgraded to Buy from Hold at TD Securities

TD Securities upgraded Sangoma Technologies to Buy from Hold with a price target of C$6.50, up from C$5.50. The company reported a solid adjusted EBITDA beat and reinstated fiscal 2024 guidance, the analyst tells investors in a research note. The firm says that Aathough the near-term growth outlook is expected to remain challenging, the new management team has made significant strides in streamlining the business and executing on a new go-to-market strategy that it believes will enable it to deliver stronger and more profitable growth. Management indicated that it will provide more color on its capital allocation strategy next quarter, which could help the stock reverse its decline, says TD.