Bandwidth, the Technology sector company, was revisited by a Wall Street analyst on July 29. Analyst William Power from Robert W. Baird maintained a Hold rating on the stock and has a $15.00 price target.
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William Power’s rating is based on a combination of positive and cautious elements in Bandwidth’s recent performance and outlook. The company reported solid Q2 results with a slight revenue and adjusted EBITDA beat, driven by strong performance in its voice segment and growing traction in AI applications. However, the guidance for Q3 was slightly below expectations, and the outlook for messaging growth was revised downward, which introduces some uncertainty.
Despite these challenges, Bandwidth maintained its full-year revenue guidance and slightly raised its adjusted EBITDA forecast, reflecting some confidence in its ongoing operations. The improvements in gross margins and free cash flow are encouraging, yet the valuation appears fair relative to current market conditions. The company’s dollar-based net retention rate has declined, partly due to the loss of political customers, adding another layer of caution to the overall assessment. These mixed factors contribute to the Hold rating, suggesting a balanced view of potential risks and opportunities.
Power covers the Technology sector, focusing on stocks such as Snowflake, Dynatrace, and Apple. According to TipRanks, Power has an average return of 17.1% and a 56.68% success rate on recommended stocks.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $14.50 price target.