Bandwidth Inc Receives a Rating Update from a Top Analyst


KeyBanc analyst Brent Bracelin maintained a Buy rating on Bandwidth Inc (NASDAQ: BAND) yesterday. The company’s shares closed yesterday at $35.06, close to its 52-week high of $35.89.

Bracelin observed:

“We were encouraged by broad-based expansion at existing customers and improving new CPaaS logos; total customers rose 24% to 1,028. Solid execution over the last two quarters since the November IPO increases our confidence in Bandwidth’s ability to sustain 20% CPaaS growth. We are raising estimates and our price target to $42 from $31, applying 3.5x EV/S (vs. prior 2.5x) on 2019. Key Investment Points Results: CPaaS growth further accelerates to +23% y/y ● Revenue of $53.0M, posted $5.8M upside to consensus of $47.2M. ● $2.2M of the revenue beat was a one-time benefit from a Verizon settlement. ● $2.6M of the revenue beat was tied to CPaaS on existing customer expansions. ● Organic growth, excluding the Verizon benefit, was 18% y/y vs. 10% last year. ● CPaaS growth improved to 23% vs.16% last quarter and 10% last year. ● Net revenue retention rate improved to 115% from 111% q/q and 110% y/y. ● New CPaaS logos: +24% y/y to 1,028 on 63 vs. 47 last quarter.”

According to TipRanks.com, Bracelin is a top 100 analyst with an average return of 19.0% and a 75.6% success rate. Bracelin covers the Technology sector, focusing on stocks such as Cornerstone Ondemand, Tyler Technologies, and Microsoft Corp.

Currently, the analyst consensus on Bandwidth Inc is Strong Buy and the average price target is $33.33, representing a -4.9% downside.

In a report issued on April 24, Dougherty also maintained a Buy rating on the stock with a $40 price target.

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The company has a one-year high of $35.89 and a one-year low of $18.05. Currently, Bandwidth Inc has an average volume of 107.7K.

Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BAND in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Bandwidth, Inc. provides business communications services. It offers data Internet, voice/voice over Internet protocol, messaging. managed network, and conferencing services. The firm serves the telecom needs of small and medium businesses. It operates through the following business segments: CPaaS and Other.

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