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On Tuesday, Stifel analysts maintained a Buy rating on Weave Communications Inc (NYSE:WEAV) with a steady price target of $16.00, representing a potential 71% upside from the current price of $9.33. According to InvestingPro data, the stock has shown significant volatility, with a beta of 1.98 and a 28% gain over the past year despite recent pressure. The firm’s assessment follows Weave’s first-quarter performance, which surpassed consensus expectations and led to an increased annual guidance. The positive results were attributed to the company’s strong specialty medical segment, which achieved a record sales quarter. InvestingPro data shows impressive revenue growth of nearly 20% over the last twelve months, with analysts forecasting 17% growth for the upcoming fiscal year.
Weave’s recent acquisition of TrueLark for $35 million was also highlighted as a significant development. TrueLark offers AI scheduling and customer service tools, which Stifel views as complementary to Weave’s existing platform. The company maintains financial flexibility for such investments, with InvestingPro analysis showing a healthy current ratio of 1.58 and more cash than debt on its balance sheet. The company plans to invest in go-to-market (GTM) strategies and research and development (R&D) to further integrate TrueLark’s offerings with Weave’s services and practice management systems.
The analysts expressed confidence in Weave’s continued momentum across its sub-verticals and the potential for new cross-selling opportunities presented by the integration of TrueLark. The positive outlook from Stifel comes despite the broader economic landscape, with management noting an absence of macroeconomic headwinds impacting the business thus far.
Weave’s strategic investments in GTM and R&D are intended to accelerate the adoption of TrueLark’s solutions and enhance the overall Weave platform. The company’s proactive approach to expanding its service offerings and integrating new technologies is expected to contribute to its growth trajectory.
In summary, Stifel’s reiteration of the Buy rating and the $16 price target reflects the firm’s optimism about Weave’s current business performance and future prospects, particularly in light of the TrueLark acquisition and the associated opportunities for expansion and innovation. The consensus among analysts remains bullish, with price targets ranging from $11 to $17. Discover more detailed insights and 6 additional ProTips about WEAV through an InvestingPro subscription, including exclusive Fair Value analysis and comprehensive financial health scores.
In other recent news, Weave Communications reported an 18.3% year-over-year revenue increase in the first quarter of fiscal year 2025, totaling $55.8 million, slightly surpassing the forecasted $54.74 million. The company’s earnings per share met expectations at $0.01. Weave Communications has also raised its full-year revenue guidance to a range of $236.8 million to $239.8 million. The company announced the acquisition of TrueLark for $35 million, a strategic move expected to enhance its AI capabilities and expand its market potential. Analysts at Piper Sandler have raised their revenue estimate for Weave Communications by $6 million to $238 million for 2025, citing the company’s strong performance and strategic acquisition.
In contrast, Loop Capital reduced its price target for Weave Communications to $16 from $18, while maintaining a Buy rating, noting the recent contraction of multiples within the software sector. Goldman Sachs also adjusted its price target for Weave Communications, raising it to $11 from $10, while maintaining a Neutral rating. Analysts highlighted the strategic importance of the TrueLark acquisition in potentially increasing Weave’s addressable market in the U.S. from $7.1 billion to $10 billion. Despite varying analyst opinions on stock targets, the acquisition of TrueLark is seen as a positive step towards Weave Communications’ growth and innovation strategy.
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