Forecasting The Future: 4 Analyst Projections For Bandwidth

In the latest quarter, 4 analysts provided ratings for Bandwidth BAND, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $24.25, along with a high estimate of $38.00 and a low estimate of $16.00. Witnessing a positive shift, the current average has risen by 12.79% from the previous average price target of $21.50.

Decoding Analyst Ratings: A Detailed Look

In examining recent analyst actions, we gain insights into how financial experts perceive Bandwidth. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Bandwidth. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Bandwidth compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Bandwidth's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Bandwidth's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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Get to Know Bandwidth Better

Bandwidth Inc is cloud-based communications platform-as-a-service (CPaaS) provider that enables enterprises to create, scale and operate voice or messaging communications services across any mobile application or connected device. Company earns revenue through the sale of communications services offered through Application Programming Interface software solutions to large as well as small and medium-sized business, customers and is generally derived from usage and service fees. Usage revenue includes voice communication (driven by inbound and outbound minutes and toll-free minutes) and messaging communication (driven by the number of messages) that traverse the platform and network. Service fees include the provision and management of phone numbers and emergency services access.

Bandwidth: Financial Performance Dissected

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Bandwidth's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 2.49%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Bandwidth's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -3.37%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Bandwidth's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -1.79% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Bandwidth's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -0.52% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Bandwidth's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.31.

Analyst Ratings: Simplified

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.