B. Riley Financial Upgrades Ribbon Communications (NASDAQ:RBBN) to Buy

Key Points

• B. Riley Financial upgraded Ribbon Communications to “buy” from “neutral” and set a $3.30 price target, implying approximately 61% upside from the cited $2.05 share price.
• Analyst sentiment remains broadly positive, with five Buy ratings and one Sell rating, resulting in a consensus “Moderate Buy” rating and an average price target of $3.56.
• Ribbon exceeded revenue expectations but reported a larger-than-expected quarterly loss, with revenue down 13% year over year. Management’s second-half outlook points to improving performance, though full-year guidance offers limited upside versus analyst estimates.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) was upgraded by B. Riley Financial from a "neutral" rating to a "buy" rating in a note issued to investors on Wednesday, Marketbeat Ratings reports. The firm presently has a $3.30 price target on the communications equipment provider's stock. B. Riley Financial's price objective suggests a potential upside of 60.98% from the company's current price.

A number of other brokerages have also recently commented on RBBN. Rosenblatt Securities reduced their price objective on Ribbon Communications from $4.00 to $3.50 and set a "buy" rating for the company in a research note on Wednesday. Weiss Ratings lowered shares of Ribbon Communications from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, May 11th. Finally, Wall Street Zen lowered Ribbon Communications from a "buy" rating to a "hold" rating in a report on Sunday, May 3rd. Five investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Ribbon Communications has a consensus rating of "Moderate Buy" and an average price target of $3.56.

Ribbon Communications Price Performance

Ribbon Communications stock opened at $2.05 on Wednesday. The stock's 50 day moving average is $2.49 and its 200 day moving average is $2.46. Ribbon Communications has a one year low of $1.80 and a one year high of $4.24. The firm has a market cap of $361.09 million, a P/E ratio of 12.06 and a beta of 1.34. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.37 and a quick ratio of 1.09.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The communications equipment provider reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($0.02). Ribbon Communications had a return on equity of 24.14% and a net margin of 3.80%.The firm had revenue of $192.34 million for the quarter, compared to the consensus estimate of $189.99 million. During the same quarter in the previous year, the business posted $0.05 EPS. The firm's revenue for the quarter was down 13.0% compared to the same quarter last year. As a group, research analysts expect that Ribbon Communications will post 0.02 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC bought a new position in Ribbon Communications in the first quarter worth $805,000. Dynamic Technology Lab Private Ltd purchased a new stake in Ribbon Communications in the first quarter worth about $124,000. Jane Street Group LLC grew its stake in shares of Ribbon Communications by 436.9% in the 1st quarter. Jane Street Group LLC now owns 101,211 shares of the communications equipment provider's stock worth $397,000 after buying an additional 82,361 shares during the last quarter. Strs Ohio purchased a new position in shares of Ribbon Communications in the 1st quarter worth about $69,000. Finally, Creative Planning increased its position in shares of Ribbon Communications by 64.8% during the second quarter. Creative Planning now owns 24,621 shares of the communications equipment provider's stock valued at $99,000 after acquiring an additional 9,682 shares in the last quarter. Hedge funds and other institutional investors own 70.92% of the company's stock.

Key Ribbon Communications News

Here are the key news stories impacting Ribbon Communications this week:

• Positive Sentiment: Revenue rose 18% sequentially to approximately $192 million, exceeding analysts’ $189.99 million estimate. Adjusted EBITDA reached $12 million, and profitability improved by $20 million from the prior quarter. Ribbon Communications Inc. Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management highlighted record quarterly IP Optical bookings, growth in North America, critical-infrastructure and data-center interconnect wins, and continued large-enterprise momentum. Salesforce selected Ribbon for its Agentforce Contact Center, providing a notable customer validation. Ribbon Communications Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Third-quarter revenue guidance of $215 million to $230 million brackets the $224.7 million consensus estimate. Full-year revenue guidance of $810 million to $840 million is also near, but slightly below, the $838.1 million analyst estimate, suggesting improving second-half expectations but limited upside to current forecasts. Ribbon Communications Earnings and Guidance
• Negative Sentiment: Ribbon posted an adjusted loss of $0.03 per share, missing the expected $0.01 loss and reversing year-ago earnings of $0.05 per share. Revenue declined 13% from $221 million a year earlier, while GAAP operating results fell to a $12 million loss from $4 million of income and gross margins contracted. Ribbon Communications Reports Q2 Loss, Tops Revenue Estimates

About Ribbon Communications

Ribbon Communications Inc is a global provider of real-time communications software and network solutions for service providers and enterprises. The company's offerings address the full life cycle of voice, video and data transmission across fixed, mobile and cloud environments. Ribbon's technology portfolio is designed to enable secure, intelligent and interoperable communications in applications such as unified communications, contact centers, wholesale VoIP interconnect and next-generation 5G networks.

Ribbon's product suite includes session border controllers (SBCs), which secure and interwork IP voice and multimedia sessions; Diameter signaling controllers for 4G/5G policy and charging control; network edge virtualization platforms; and analytics engines for service assurance and fraud management.

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