Tigress Financial Partners Starts Weave Communications Inc (WEAV) at Buy

Tigress Financial Partners analyst Ivan Feinseth initiates coverage on Weave Communications Inc (NYSE: WEAV) with a Buy rating and a price target of $22.00.

The analyst commented, "WEAV is well-positioned to benefit from the ongoing enterprise digital transformation in the SMB (Small and Medium-size Business) market. WEAV will drive accelerating business performance growth trends through continued adoption into its existing markets and expansion into new markets along with additional services. WEAV recently reported strong results as its first quarter as a public company with Q3 revenue increasing 42% Y/Y to $30.3 million driven by an expanded vertical market presence and expanding into the home services market. WEAV added 1,326 net new customer locations in Q3 for a total of 22,553, up 31% Y/Y. WEAV’s Net Retention Rate (NRR) was 104% highlighting ongoing customer acceptance and utilization of its platform. Its Gross Retention Rate (GRR) was 93%, highlighting WEAV’s increasing product-market fit and ability to retain customers. In addition, WEAV added new key integration partnerships with QuickBooks Online and Sycle, creating a foundation for new market growth in the home services vertical and enabling deeper penetration into existing key verticals. WEAV’s unique product offerings enable it to cost-effectively and profitably penetrate an underserved and disparate market of professional service providers and have the potential to create a dominant position in an over-$11 billion potential total addressable market. WEAV overcame the COVID-19 headwinds to its primary new customer acquisition source of industry conferences by expanding its digital marketing capabilities. As we continue to move into a post-pandemic world, WEAV will be in an even better position, having demonstrated strong growth momentum to drive greater new customer acquisitions through both ongoing digital initiatives and the return to in-person industry conference-based marketing. In addition, the launch of new services, especially the expansion of payment services, and penetration into new markets, including home service providers and other types of professional service providers, create significant upside opportunity. WEAV’s expandable UCaaS platform provides significant operating leverage that will eventually drive Business Performance trends, an increasing Return on Capital, further gains in Economic Profit, and long-term shareholder value creation. We believe further upside in the shares exists, and our 12-month target price of $22 represents a potential return of well over 40% from current levels."

For an analyst ratings summary and ratings history on Weave Communications Inc click here. For more ratings news on Weave Communications Inc click here.

Shares of Weave Communications Inc closed at $14.98 yesterday.

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