The Analyst Verdict: Bandwidth In The Eyes Of 4 Experts

Analysts' ratings for Bandwidth BAND over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $20.5, a high estimate of $36.00, and a low estimate of $11.00. A 12.77% drop is evident in the current average compared to the previous average price target of $23.50.

Breaking Down Analyst Ratings: A Detailed Examination

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: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Bandwidth. This information provides a snapshot of how analysts perceive 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 explore the dynamics of price targets, providing estimates for the future value of Bandwidth's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Bandwidth's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Bandwidth analyst ratings.

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Unveiling the Story Behind 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 enterprise customers. The majority of our revenue is generated from usage-based fees that includes voice communication and messaging communication that traverse the platform and network.

Bandwidth: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3M period, Bandwidth showcased positive performance, achieving a revenue growth rate of 1.88% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: Bandwidth's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -2.15%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of -1.14%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Bandwidth's ROA stands out, surpassing industry averages. With an impressive ROA of -0.38%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Bandwidth's debt-to-equity ratio is below the industry average. With a ratio of 1.39, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Basics of Analyst Ratings

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.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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