Some may interpret a stock ratings downgrade as an area for concern when they are selecting a unified communications solution. However, fear, uncertainty, and doubt created by one firm’s view may prevent businesses from making the right decision when deciding between different vendors.
TheStreet is a financial media company that publishes Buy, Hold, or Sell recommendations for all stocks. These recommendations are based on a proprietary model as well as subjective opinion. TheStreet is not an investment bank or equity research firm and doesn’t have analysts assigned to cover specific industries so opinions are very broad based.
A clear example of TheStreet’s limited industry knowledge can be seen when looking at TheStreet’s analysis of ShoreTel’s peer group.
Most of the companies listed as ShoreTel peers have nothing to do with the unified communications industry. For example, one of the stocks listed is Digi International, “the leader in commercial grade device networking and innovator of wireless machine-to-machine (M2M) device networking products.”
This has nothing to do with ShoreTel, let alone the unified communications industry.
Investment banks and equity research firms provide much more reliable sources for company and industry information. After each quarterly earnings call, analysts are given the opportunity to have management clarify results and answer their questions. Then, these analysts publish detailed research reports expressing their unbiased opinion about each stock in the industry that they cover.
Below is a summary of ALL ratings of ShoreTel stock from recognized investment banks and equity research firms who have dedicated analysts covering the unified communications industry.
|Covering Firm||Covering Analyst||ShoreTel Rating|
|Craig-Hallum Capital Group||Christian Schwab||Hold|
|Lazard Capital Markets||Ryan Hutchinson||Buy|
|Northland Capital Markets||Mike Latimore||Outperform|
|Piper Jaffray||Troy D. Jensen||Overweight|
|Sidoti & Company, LLC||Gregory Burns||Buy|
|Stifel Nicolaus||Sanjiv Wadhwani||Buy|
|William Blair||Dmitry Netis||Outperform|
The results above from eight different industry analysts well-versed in the unified communications industry paint a far brighter picture of ShoreTel.
The future prospects for a company and its financial viability are important factors to consider when selecting a unified communications solution. ShoreTel respects everyone’s right to their opinion but would like to present a complete picture so that prospective customers can make an informed decision.