Fed Governor Adriana Kugler to resign
On Tuesday, Loop Capital analysts maintained their Buy rating and $18.00 price target for Weave Communications Inc (NYSE: WEAV), representing significant upside from the current price of $12.01. According to InvestingPro data, the stock has shown strong momentum with a 7.81% gain over the past week. During a recent visit to Weave’s headquarters, analysts met with the incoming CFO Jason Christiansen, the current CFO Alan Taylor, who will retire at the end of March, and IR Director Mark McReynolds. The meeting’s primary purpose was to introduce the analysts to Christiansen and to understand his initial priorities as he steps into his new role.
The Loop Capital team reported their increased confidence in Weave’s potential for growth after the discussions. This optimism appears well-founded, as InvestingPro data shows impressive revenue growth of 19.85% over the last twelve months, with the company maintaining a robust gross margin of 71.4%. They believe the company is well-positioned to capitalize on various growth drivers. These include expanding its market share in its core sectors such as dental, optometry, and veterinary care, as well as targeting larger dental practices with multiple locations.
The analysts also highlighted Weave’s strategic moves to penetrate specialty medical practices, which could further bolster the company’s growth trajectory. While the company is not currently profitable, InvestingPro analysis indicates analysts expect profitability by the end of this fiscal year. Loop Capital’s continued endorsement of Weave’s stock is based on the firm’s ability to meet and exceed its targets through these initiatives.
Additionally, the analysts pointed to Weave’s efforts to cross-sell new capabilities, such as payment processing and artificial intelligence, to its expanding customer base. They see these new offerings as significant opportunities for Weave to enhance its value proposition and deepen its market penetration.
The reaffirmed Buy rating and price target reflect Loop Capital’s optimism about Weave Communications’ strategic direction and potential for increased revenue. The stock’s performance in the market will continue to be observed as the company implements its growth strategies and begins a new chapter under CFO Jason Christiansen’s financial leadership.
In other recent news, Weave Communications reported its fourth-quarter earnings, which did not meet analyst expectations. The company posted an adjusted loss of $0.09 per share, missing the consensus estimate of a $0.01 profit. However, revenue for the quarter was slightly above forecasts at $54.2 million, marking an 18.6% year-over-year increase. Looking ahead, Weave Communications expects first-quarter 2025 revenue between $54-55 million, aligning with the consensus of $54.737 million, but its EPS guidance remains wide-ranging and unclear compared to analysts’ $0.01 estimate. For the full year 2025, the company projects EPS between $2.00 and $6.00, which contrasts with the $0.11 consensus, while revenue guidance of $232-237 million remains in line with expectations. Despite the earnings miss, Weave Communications reported positive free cash flow of $6.1 million for the fourth quarter, an increase from $2.9 million in the same period last year. The company also added 3,995 net new customer locations in 2024, bringing its total to 34,997 by year-end, with a dollar-based net retention rate of 98%. CEO Roy Banks expressed satisfaction with the company’s revenue growth and improved profitability in 2024, emphasizing the focus on platform enhancements to drive customer acquisition and retention.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.