Analyst Joshua Reilly of Needham maintained a Buy rating on Bandwidth, retaining the price target of $20.00.
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Joshua Reilly has given his Buy rating due to a combination of factors including Bandwidth’s strong performance in the second quarter of 2025. The company reported better-than-expected results in terms of revenue and adjusted EBITDA, which indicates a positive trajectory. Despite the unchanged revenue guidance, the anticipated acceleration in revenue growth, particularly in the voice segment, supports the Buy recommendation.
Reilly highlights the significant growth in voice revenue, which increased by 8.6% compared to the previous year’s 2.8% growth in the same quarter. This growth is attributed to the rising use of AI in customer support, which aligns with the expected acceleration in this area. Additionally, the company’s valuation remains appealing, with a 10x EV/FCF ratio based on fiscal year 2025 estimates, suggesting potential for further growth in 2026 according to the long-term model.
Reilly covers the Technology sector, focusing on stocks such as Bandwidth, Asure, and Karooooo. According to TipRanks, Reilly has an average return of 3.5% and a 45.87% success rate on recommended stocks.