6 Analysts Assess Bandwidth: What You Need To Know
Analysts' ratings for Bandwidth (NASDAQ:BAND) over the last quarter vary from bullish to bearish, as provided by 6 analysts.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 3 | 1 | 1 | 0 |
| Last 30D | 0 | 0 | 0 | 1 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 3 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $29.33, a high estimate of $40.00, and a low estimate of $15.00. Witnessing a positive shift, the current average has risen by 15.79% from the previous average price target of $25.33.
Deciphering Analyst Ratings: An In-Depth Analysis
A clear picture of Bandwidth's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Meta Marshall | Morgan Stanley | Lowers | Underweight | $15.00 | $18.00 |
| Thomas Blakey | Keybanc | Raises | Overweight | $32.00 | $21.00 |
| Ryan Macwilliams | Barclays | Raises | Overweight | $28.00 | $22.00 |
| Patrick Walravens | JMP Securities | Raises | Market Outperform | $36.00 | $32.00 |
| Michael Walkley | Canaccord Genuity | Raises | Buy | $40.00 | $38.00 |
| William Power | Baird | Raises | Neutral | $25.00 | $21.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Bandwidth. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Bandwidth compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Bandwidth's stock. This comparison reveals trends in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Bandwidth's market standing. Stay informed and make data-driven decisions with our Ratings Table.
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Get to Know Bandwidth Better
Bandwidth Inc is cloud-based communications platform-as-a-service (CPaaS) provider that enables enterprises to create, scale and operate voice or messaging communications services across any mobile application or connected device. Company earns revenue through the sale of communications services offered through Application Programming Interface software solutions to large as well as small and medium-sized business, customers and is generally derived from usage and service fees. Usage revenue includes voice communication (driven by inbound and outbound minutes and toll-free minutes) and messaging communication (driven by the number of messages) that traverse the platform and network. Service fees include the provision and management of phone numbers and emergency services access.
Bandwidth: A Financial Overview
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Bandwidth's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 24.08%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.
Net Margin: Bandwidth's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -5.4%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Bandwidth's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.1%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Bandwidth's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.84%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Bandwidth's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.16.
Analyst Ratings: Simplified
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.