Bandwidth stock maintains Market Outperform rating at JMP on enterprise growth

Investing.com - JMP Securities has reiterated its Market Outperform rating and $36.00 price target on Bandwidth Inc. (NASDAQ:BAND) following the company’s annual user conference, Reverb 2025. Currently trading at $18.29, the stock sits well below analysts’ targets ranging from $15 to $36, with InvestingPro data indicating the stock may be undervalued based on its proprietary Fair Value model.

The firm maintained its positive outlook after attending the conference in Raleigh, North Carolina, which featured Q&A sessions with CEO David Morken, CFO Daryl Raiford, COO Devesh Agarwal, and CPO John Bell. JMP noted that Bandwidth stock has increased 10% on Wednesday and is up 7% year-to-date, compared to a 12% increase for the Russell 3000.

JMP cited several factors supporting its bullish stance, including Bandwidth’s focus on enterprise customers, with the firm observing that the company is winning more $1M+ ARR customers than ever before, with new enterprise wins standardizing on the Maestro platform. Revenue growth remains solid at 14.5% year-over-year, with the company maintaining a healthy current ratio of 1.31.

The research firm also highlighted Bandwidth’s initiatives in agentic AI and premium feature monetization, particularly its Activation Agent and anomaly detection capabilities, along with strong partnerships with platforms like Salesforce, a relationship established in 2019.

JMP further noted that Bandwidth targets a total addressable market of $18 billion in 2024, expected to grow to $28 billion by 2028, while trading at what it considers a depressed valuation of 0.8x 2026E EV/revenue and 8x 2026E EV/FCF, potentially making it an attractive acquisition target. Get deeper insights into Bandwidth’s valuation metrics and 12 additional exclusive ProTips with a subscription to InvestingPro, including comprehensive analysis through the Pro Research Report.

In other recent news, Bandwidth Inc. reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.38, compared to the forecasted $0.32. The company’s revenue for the quarter reached $180 million, slightly above the anticipated $178.87 million. Despite these positive financial results, Bandwidth’s stock experienced a notable decline. JMP analyst Patrick Walravens maintained a Market Outperform rating on Bandwidth, setting a price target of $36.00. In addition to its earnings report, Bandwidth announced a partnership with Out There Media to introduce RCS messaging to the U.S. market. This collaboration aims to enhance messaging campaigns by combining Bandwidth’s Communications Cloud with Out There Media’s Mobucks platform. These developments mark significant steps for Bandwidth in both financial performance and strategic partnerships.

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