
Bandwidth (BAND) Stock Forecast & Price Target
Bandwidth (BAND) Analyst Ratings
Bulls say
Bandwidth Inc's Voice revenue is projected to grow approximately 5% in 2024, driven by a significant increase in Enterprise Voice, which is expected to rise by 29%. The company anticipates that the proportion of messaging revenue within its Cloud Communications segment will increase from 21% to 25% by 2026, highlighting a strategic shift towards enhancing messaging services. Furthermore, Bandwidth expects to achieve ongoing operational leverage due to its fixed cost voice infrastructure, leading to improved free cash flow margins in the future.
Bears say
Bandwidth Inc. faces a challenging outlook due to expected declines in messaging surcharges, particularly from political revenue, which previously contributed significantly to its higher surcharge rates. Additionally, a global macroeconomic slowdown is anticipated to negatively impact voice and messaging volumes, leading to higher pressures on overall platform usage and potentially a prolonged compression of its financial multiples. Furthermore, the company has experienced customer churn of approximately 900 clients with an average revenue per user (ARPU) of about $2,000, which, while beneficial for margins in the short term, raises concerns about long-term revenue sustainability.
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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