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BAND: Expanding AI Communications Ecosystem Will Drive Future Revenue Upside

BAND: Future AI Voice and Trusted Communications Will Drive Business Evolution

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BAND
AnalystConsensusTarget
Not Invested
Published 30 May 2025

Update shared on 07 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-18.4%
7D
2.8%

Analysts have modestly raised their price target on Bandwidth to approximately $23.67 per share. This reflects a slightly higher discount rate and future earnings multiple that together support a marginally stronger long term valuation outlook.

What's in the News

  • Issued full year 2025 revenue guidance of $747 million to $760 million, signaling confidence in continued top line growth (Corporate guidance)
  • Launched support for OpenAI's latest Realtime API with SIP voice calling, enabling enterprises to deploy conversational AI voice agents on Bandwidth's edge infrastructure (Product announcement)
  • Expanded AI ecosystem with multiple integration paths, including Google Dialogflow, Cognigy, third party apps via programmable voice APIs, and standards based APIs like OpenAI's Realtime API (Product strategy)
  • Formed a partnership with Out There Media to deliver next generation RCS for Business in the U.S., combining Bandwidth's Communications Cloud with the Mobucks platform and the MessagingStudio campaign builder (Client announcement)
  • Set to livestream Reverb25, showcasing new innovations in trusted, AI powered communications, trust services, and advanced messaging, with demos from global enterprises and SaaS innovators (Event announcement)

Valuation Changes

  • Fair Value: Unchanged at approximately $23.67 per share, indicating a stable central case valuation.
  • Discount Rate: Increased slightly from about 7.94 percent to 8.23 percent, reflecting a modestly higher required return on capital.
  • Revenue Growth: Effectively unchanged at around 9.87 percent, indicating a consistent long term outlook for top line growth.
  • Net Profit Margin: Essentially flat at roughly 3.41 percent, indicating no material shift in long term profitability assumptions.
  • Future P/E: Increased slightly from about 32.19x to 32.45x, implying a marginally higher valuation multiple on expected earnings.

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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.