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UPDATE: Goldman Sachs Downgrades Weave Communications Inc (WEAV) to Neutral

March 9, 2022 9:33 AM EST
Get Alerts WEAV Hot Sheet
Price: $5.84 --0%

Rating Summary:
    6 Buy, 5 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 5 | Down: 23 | New: 10
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(Updated - March 9, 2022 9:34 AM EST)

Goldman Sachs analyst Kash Rangan downgraded Weave Communications Inc (NYSE: WEAV) from Buy to Neutral with a price target of $13.00 (from $37.00).

The analyst comments "Weave has traded down 68% since its IPO, including nearly ~-35% since reporting F4Q21 results, with FY23 total revenue guidance of +17-21% y/y implying a significant slowdown from FY21 revenue growth of +45% y/y. We are downgrading the stock to Neutral and lowering our PT to $13 from $37 prior. Since we initiated at Buy on December 5, 2021, WEAV is down 63% vs the S&P500 -8.1%, which we believe reflects several near-term challenges facing the company, including severe sales attrition, slower ramp times, reduction in sales productivity, revamping of its go-to-market motion, impact of omicron/ macroeconomic uncertainty on SMB customers, inflationary pressures and reliance on in-person sales and conferences for lead generation. We believe Weave is challenged by execution risks and short-term disruptions and as a result lower our revenue estimates to +19%/25% y/y for FY22/23 versus prior estimates of +32%/35% y/y. Weave is in the early days of addressing an $8bn+ market with a unique platform. Industry growth levers include small office digitization, customer engagement, cloud, and digital payments. Weave is ~10% penetrated into the dental vertical and is in the early stages of penetrating other medical and home services verticals."

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 $6.01 yesterday.


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