Analysts rate Avaya Holdings Corp. (AVYA:NYE) with an Underperform rating and a $5 target

STA Research
by: STA Research
Avaya Holdings Corp.

Based on the Avaya Holdings Corp stock forecast from 7 analysts, the average analyst Avaya stock price target is USD 5.45 over the next 12 months. Avaya Holdings Corp’s average analyst rating is Underperform.  Stock Target Advisor’s own stock analysis of AVYA stock forecast is Bearish, which is based on 2 positive signals and 8 negative signals. At the last closing, AVYA stock price was USD 1.71AVYA stock price has changed by +0.39% over the past week, +0.89% over the past month and -91.66% over the last year.

About Avaya Holdings Corp. (AVYA:NYE):

Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The company operates in two segments, Products & Solutions and Services. The Products & Solutions segment offers unified communications and collaboration (UCC), and contact center (CC) platforms, applications, and devices. The company also offers business devices, such as IP-enabled handsets, multimedia devices, and conferencing systems. It sells directly through its sales force, as well as indirectly through its network of channel partners, including distributors, service providers, dealers, value-added resellers, system integrators, and business partners. The company has a strategic collaboration with RingCentral, Inc. to accelerate the company’s transition to the cloud. Avaya Holdings Corp. is headquartered in Durham, North Carolina.

 

Most Recent Analyst Ratings for AVYA’s Stock:

 

What we like:

Underpriced compared to book value:

Avaya stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

 

What we don’t like:

Low market capitalization:

AVYA stock is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for AVYA stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns:

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

Avaya stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the AVYA stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative free cash flow:

The company had negative total free cash flow in the most recent four quarters.

Low Revenue Growth:

AVYA stock has shown below median revenue growth in the previous 5 years compared to its sector

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.