Ribbon Communications (NASDAQ:RBBN) Price Target Lowered to $3.50 at Rosenblatt Securities

Key Points

• Rosenblatt Securities lowered Ribbon Communications’ price target to $3.50 from $4.00 while maintaining a “buy” rating, implying roughly 71% upside from the stock’s $2.05 price. The broader analyst consensus remains “Moderate Buy,” with an average target of $3.56.
• Ribbon reported quarterly revenue of $192.34 million, exceeding estimates, but its $0.03 per-share loss was wider than expected and revenue fell 13% year over year. The company also posted lower margins and a GAAP operating loss.
• Institutional ownership stands at 70.92%, with several investment firms adding or initiating positions. Analysts and management cited improving bookings and second-half expectations, though full-year guidance offers limited upside versus current forecasts.

Ribbon Communications (NASDAQ:RBBN - Get Free Report) had its price target decreased by equities researchers at Rosenblatt Securities from $4.00 to $3.50 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the communications equipment provider's stock. Rosenblatt Securities' price target points to a potential upside of 70.73% from the stock's current price.

A number of other research firms have also weighed in on RBBN. B. Riley Financial reiterated a "neutral" rating on shares of Ribbon Communications in a research note on Wednesday, April 29th. Weiss Ratings lowered shares of Ribbon Communications from a "sell (d+)" rating to a "sell (d)" rating in a research note on Monday, May 11th. Finally, Wall Street Zen downgraded shares of Ribbon Communications from a "buy" rating to a "hold" rating in a research note on Sunday, May 3rd. Five equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Ribbon Communications presently has a consensus rating of "Moderate Buy" and an average target price of $3.56.

Ribbon Communications Trading Up 0.5%

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

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

Institutional Investors Weigh In On Ribbon Communications

Institutional investors and hedge funds have recently bought and sold shares of the company. AQR Capital Management LLC purchased a new stake in shares of Ribbon Communications in the 1st quarter worth $805,000. Dynamic Technology Lab Private Ltd purchased a new position in shares of Ribbon Communications during the first quarter valued at $124,000. Jane Street Group LLC raised its holdings in shares of Ribbon Communications by 436.9% in the first quarter. Jane Street Group LLC now owns 101,211 shares of the communications equipment provider's stock valued at $397,000 after acquiring an additional 82,361 shares in the last quarter. Strs Ohio purchased a new stake in Ribbon Communications in the first quarter worth about $69,000. Finally, Creative Planning grew its holdings in Ribbon Communications by 64.8% during the 2nd quarter. Creative Planning now owns 24,621 shares of the communications equipment provider's stock worth $99,000 after acquiring an additional 9,682 shares in the last quarter. 70.92% of the stock is owned by institutional investors.

Key Headlines Impacting Ribbon Communications

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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