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BAND: AI Voice Integrations Will Drive Long-Term Upside Potential

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 22 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-16.2%
7D
1.2%

Analysts have modestly increased their price target for Bandwidth to approximately $23.67 per share, citing a slightly higher discount rate and stable expectations for revenue growth, profit margins, and future valuation multiples.

What's in the News

  • Issued full year 2025 guidance, projecting revenue between $747 million and $760 million, signaling confidence in continued top line growth (Corporate Guidance)
  • Announced support for OpenAI's latest Realtime API, integrating SIP-based voice calling so enterprises can deploy their own GPT powered conversational voice agents on Bandwidth's edge infrastructure (Product Related Announcement)
  • Expanded its open, multi pathway AI strategy with options ranging from pre built integrations with platforms like Google Dialogflow and Cognigy to standards based APIs such as OpenAI's Realtime API, broadening routes to build AI enhanced communications (Product Related Announcement)
  • Highlighted advantages of its owned and operated global cloud communications network, positioning low latency, high fidelity voice and intelligent routing as key enablers for mission critical conversational AI use cases (Product Related Announcement)

Valuation Changes

  • Fair Value: Unchanged at approximately $23.67 per share, indicating stable long term intrinsic value expectations.
  • Discount Rate: Risen slightly from about 8.23 percent to roughly 8.29 percent, reflecting a modest increase in perceived risk or required return.
  • Revenue Growth: Effectively unchanged at around 9.87 percent, signaling consistent expectations for top line expansion.
  • Net Profit Margin: Essentially flat at about 3.41 percent, suggesting no material shift in long term profitability assumptions.
  • Future P/E: Edged up slightly from roughly 32.45x to about 32.50x, implying a marginally higher valuation multiple on expected earnings.

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Disclaimer

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