
Bandwidth (BAND) Stock Forecast & Price Target
Bandwidth (BAND) Analyst Ratings
Bulls say
Bandwidth Inc. has demonstrated growth in its Voice revenue, estimated to increase by approximately 5% in 2024, with a notable 29% growth in Enterprise Voice services, indicating robust demand within this segment. The anticipated increase in the messaging revenue mix from 21% to 25% of total Cloud Communications revenue by 2026 suggests a positive shift in revenue diversification and potential for increased profitability. Additionally, the expectation of higher free cash flow margins over time, driven by leverage from fixed-cost infrastructure, underscores the company's capacity for sustained financial improvement.
Bears say
The financial outlook for Bandwidth Inc appears negative due to expectations of a potential decline in messaging surcharges, particularly attributed to reduced political revenue, which typically commands higher surcharge rates. Additionally, assumptions of a global macroeconomic slowdown could inhibit voice and messaging volumes, likely resulting in decreased overall platform usage and a sustained compression of revenue multiples. Finally, although the departure of 900 low-revenue customers has improved margins, this churn indicates potential vulnerabilities in the customer base that may impact future growth prospects.
This aggregate rating is based on analysts' research of Bandwidth and is not a guaranteed prediction by Public.com or investment advice.
Bandwidth (BAND) Analyst Forecast & Price Prediction
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