Update shared on 04 Nov 2025
Fair value Decreased 21%Narrative Update on Bandwidth: Analyst Price Target Adjustment
Analysts have reduced their fair value estimate for Bandwidth from $21.50 to $17.00. They cite moderating revenue growth projections and a higher discount rate as key factors driving the updated outlook.
What's in the News
- Bandwidth provided earnings guidance for the full year 2025, projecting revenue between $747 million and $760 million. (Company announcement)
- Announced support for OpenAI's latest Realtime API, enabling enterprises to integrate advanced conversational AI voice agents with Bandwidth's infrastructure. (Company announcement)
- Plans to livestream Reverb25, where the company will unveil new innovations for AI-powered, trusted communications and showcase advancements in Trust Services and messaging platforms. (Company announcement)
- Formed a partnership with Out There Media to introduce next-generation RCS for Business capabilities to the U.S. market, aiming to enhance mobile brand engagement. (Company announcement)
Valuation Changes
- Consensus Analyst Price Target: Decreased markedly from $21.50 to $17.00.
- Discount Rate: Increased from 6.87% to 7.91%, which reflects a higher perceived risk.
- Revenue Growth: Projected growth rate has been revised downward from 9.22% to 7.96%.
- Net Profit Margin: Improved from 1.80% to 5.18%, indicating higher profitability expectations.
- Future P/E: Lowered significantly from 53.22x to 16.05x, suggesting a less optimistic valuation outlook.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.