Benzinga | Jul 16, 2020 03:55PM EDT

AudioCodes Will Benefit From Accelerating Teams Voice Deployment, Needham Says

AudioCodes' (NASDAQ:AUDC) accelerated shift to cloud computing, precipitated by COVID-19, could serve to sustainably drive revenue growth rate, according to Needham.

The AUDC Analyst: Richard Valera upgraded the stock from Hold to Buy and established a price target of $42.

The AUDC Thesis: Recent channel checks suggest accelerating momentum for Teams Voice deployments, and a relative increase for the demand of AUDC SBCs, which positions AUDC well for upside in 2020.

Teams usage increased exponentially "as a result of COVID-driven WFH" and new Teams adopters are hoping to consolidate more communication/collaboration functions on the Microsoft platform.

To that end, AUDC should see 15%-20% growth in the Microsoft-related voice deployments segment.

AUDC Price Action: Shares of AUDC traded higher by 9% Thursday to $36.04