Gold prices steady ahead of Fed decision, Trump’s tariff deadline
Tuesday - Loop Capital analysts have adjusted the price target for Weave Communications Inc (NYSE: WEAV) shares to $16 from the previous $18 while maintaining a Buy rating on the stock. The revision follows the company’s March quarter earnings report, which revealed revenues of $56 million, surpassing Loop Capital’s estimate by $1 million. The firm’s profitability metrics, including non-GAAP EPS and adjusted EBITDA, aligned closely with expectations. According to InvestingPro data, WEAV has demonstrated strong revenue growth of ~20% over the last twelve months, with a robust gross profit margin of 71.4%.
Weave Communications has also raised its full-year revenue guidance and announced the strategic acquisition of TrueLark, a company specializing in AI-powered front-desk automation software. According to Loop Capital, this acquisition is a strategic fit within Weave’s plan to enhance its AI capabilities and solutions that can be cross-sold to its existing customer base. InvestingPro analysis shows the company maintains a healthy current ratio of 1.58 and holds more cash than debt on its balance sheet, suggesting financial flexibility for strategic investments.
Despite the price target reduction, Loop Capital remains confident in Weave Communications’ potential for delivering strong returns, especially as a small-cap stock that could be overlooked by the market. The decision to lower the price target was attributed to the recent contraction of multiples within the software sector.
The analyst from Loop Capital expressed a continued belief in the company’s performance, stating, "We cannot say that this quarter increased our conviction, but we remain confident in our Buy rating and continue to believe that WEAV’s shares can be the kind of off-the-radar small-cap name that delivers outsized returns." The new price target reflects an adjustment to market conditions while still signaling optimism about Weave Communications’ future prospects.
In other recent news, Weave Communications Inc. reported a significant 18.3% increase in revenue for the first quarter of fiscal year 2025, reaching $55.8 million. This exceeded the forecasted $54.74 million, while earnings per share (EPS) met expectations at $0.01. The company has also raised its full-year revenue guidance to between $236.8 million and $239.8 million. Weave announced its acquisition of TrueLark, an AI-driven workflow automation company, for $35 million, expected to be completed by the second quarter of fiscal year 2025. This acquisition is anticipated to expand Weave’s market potential and increase its addressable market in the U.S. from $7.1 billion to $10 billion. Analyst Kash Rangan from Goldman Sachs adjusted Weave’s stock price target from $10.00 to $11.00, maintaining a Neutral rating. The acquisition of TrueLark is seen as strategically beneficial, though Rangan suggests waiting for more evidence of sustainable revenue acceleration before adopting a more positive outlook. Weave’s Payments segment continues to grow rapidly, doubling the rate of total revenue growth, contributing to the company’s overall performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.