As previously reported, Needham assumed coverage of Bandwidth (BAND) with a Buy rating and $20 price target The firm believes the combination of ramping free cash flow/EBITDA margins with a secular tailwind for voice applications in customer service will support ongoing growth in Enterprise Voice, which is margin accretive to the company. Needham expects Bandwidth to continue winning market share from legacy telcos due to their differentiated solution including Maestro operating system, and global voice network. Additionally, Bandwidth reported a strong Q1/25, while updating guidance conservatively to account for the uncertain macro, the firm points out. However, Needham believes the company is positioned for ongoing beats in revenue and EBITDA for the balance of the year due to their strong momentum in voice AI applications.
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Read More on BAND:
- Bandwidth transferred with a Buy at Needham
- Positive Outlook for Bandwidth: Buy Rating Supported by Growth in Free Cash Flow, EBITDA Margins, and Market Share Expansion
- Bandwidth reports Q1 EPS 36c, consensus 27c
- Bandwidth sees Q2 revenue $178M-$180M, consensus $179.7M
- Bandwidth sees FY25 revenue $745M-$760M, consensus $745.95M
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