Key Takeaways From Bandwidth Analyst Ratings

Bandwidth BAND underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

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

The 12-month price targets, analyzed by analysts, offer insights with an average target of $23.75, a high estimate of $36.00, and a low estimate of $15.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 11.21%.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Bandwidth among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Bandwidth. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Bandwidth compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Bandwidth's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Bandwidth's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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About Bandwidth

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's Economic Impact: An Analysis

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 June, 2024, the company achieved an impressive revenue growth rate of 19.01%. 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 net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.34% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Bandwidth's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.34% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Bandwidth's ROA stands out, surpassing industry averages. With an impressive ROA of 0.39%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a below-average debt-to-equity ratio of 1.77, Bandwidth adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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