Bandwidth, Inc (NASDAQ:BAND) stock price has been on the rise since the start of this year. Traders and investors are showing confidence in its cloud-based software platforms and nationwide IP voice network. BAND is a software company focused on communications for the enterprise.
The company’s stock price grew 60% since the start of this year to an all-time high of $37 a share at present. The software company has the total market cap of $660 million – with the 52-week trading range of $18.05 – $37.87.
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Wall Street analysts, however, are seeing further upside potential for Bandwidth stock. KeyCorp equity researchers have set its price target at $42 a share with ‘Buy’ ratings. Dougherty & Co. has also issued ‘Buy’ ratings for Bandwidth stock with the price target of $40.
Financial Results
Its solid financial numbers for the first quarter have enhanced analyst’s confidence in its stock price performance.
The company has topped revenue and earnings estimates for the first quarter by $5.8 million and $0.24 per share. Its CPaaS revenue soared 23% year-over-year in the first quarter while active CPaaS customers increased 26% from the year-ago period. Dollar-based net retention rate jumped 115% Y/Y in the first quarter.
“The first quarter was an outstanding start to 2018 driven by robust enterprise demand to embed voice, messaging and 911 into software applications,” stated David Morken, the chief executive officer of Bandwidth.
Outlook Supports Stock Uptrend
The company expects its full-year revenue to stand in range of $196 million, driven by increasing enterprise demand for integrated communications and cloud applications. The company appears in a stable cash position to support its growth activities. It generated $11.2 million form operating cash flows in the first quarter, and its free cash flows were standing close to $9.8 million. The company believes they have sufficient funds to cover capital investments.
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