EU and US could reach trade deal this weekend - Reuters
Needham maintained its buy rating and $20.00 price target on Bandwidth Inc. (NASDAQ:BAND), currently trading at $14.26, following a virtual non-deal roadshow with the company’s CFO Daryl Raiford. According to InvestingPro data, analyst targets for the stock range from $12 to $36, with the company currently appearing undervalued based on Fair Value analysis.
The research firm highlighted Bandwidth’s differentiated Voice platform compared to legacy carriers and noted accelerating growth in Voice AI applications among customers. This growth strategy appears to be working, with revenue increasing 18.51% over the last twelve months. Needham expects Bandwidth to benefit significantly as enterprises increasingly adopt Voice AI for customer support and other use cases.
Needham believes Bandwidth’s Voice forecasts for fiscal year 2025 remain conservative, with growth trajectory likely to increase over the next two to three years. Key discussion topics during the roadshow included Voice AI application trajectory and growing cross-selling of the company’s Maestro product.
Capital allocation strategies, including building cash reserves, were also addressed during the virtual meeting with Bandwidth’s CFO. The company continues to maintain its 2026 financial targets as a goal.
Needham indicated the current outlook creates a "conservative set-up" for Bandwidth over the next 18 months, suggesting potential upside to current projections as Voice AI adoption continues to expand across enterprises. InvestingPro subscribers can access additional insights, including 7 more ProTips and a comprehensive analysis of Bandwidth’s financial health and growth prospects through the Pro Research Report.
In other recent news, Bandwidth Inc. reported first-quarter 2025 earnings that exceeded market expectations, with earnings per share (EPS) of $0.36, surpassing the forecast of $0.26. The company’s revenue also outperformed estimates, reaching $174 million compared to the anticipated $169 million. Bandwidth’s Cloud Communications segment contributed $133 million to the overall revenue, which was above the consensus of $131 million, marking a 4% rise year-over-year. Despite these positive figures, the company experienced a free cash flow of negative $13 million for the quarter, which was below the consensus forecast of negative $1 million. Analysts from JMP Securities and Needham have shown confidence in Bandwidth’s performance, with JMP Securities maintaining a Market Outperform rating and Needham initiating coverage with a Buy rating and a $20 price target. Meanwhile, Citizens JMP analyst Patrick Walravens reiterated a Market Outperform rating with a $36 price target, citing Bandwidth’s strategic positioning and leadership. In contrast, Citi analyst Tyler Radke maintained a Neutral rating on Zoom Video Communications (NASDAQ:ZM), adjusting the price target to $84 from $85, citing limited growth catalysts for the company. These developments reflect the varying perspectives of analysts on the companies’ financial health and future growth prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.