Sheryar Siddiq
1 min read
In This Article:
On May 28, Benchmark analyst Matt Harrigan reaffirmed his stable Buy rating for Ooma Inc. (NYSE:OOMA) while maintaining a price target of $20. The analyst highlighted the company's robust product line, particularly the AirDial POTS (Plain Old Telephone Service) replacement solution, as a key factor in its continued progress.
Harrigan stressed that the AirDial device meets a significant market demand, since more than 20 million POTS lines in North America urgently require an upgrade to prevent cost increases and possible safety hazards. He expects Ooma Inc. (NYSE:OOMA) to continue to experience gains in margins as a result of operational leverage, including lower costs for R&D.
Harrigan added that if the current upward trends continue, there may be more potential for the stock. He noted AirDial's impressive performance as a key growth driver and proposed that the company's valuation potential could be improve by exceeding existing estimates for Adjusted EBITDA margins.
While we acknowledge the potential of OOMA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OOMA and that has 100x upside potential, check out our report about the cheapest AI stock.
Read Next: 11 Best Performing Cybersecurity Stocks So Far in 2025 and 11 Best Predictive Analytics Stocks to Buy According to Analysts.
Disclosure: None.
