UPDATE: Morgan Stanley Upgrades Bandwidth Inc. (BAND) to Equalweight
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Morgan Stanley analyst Meta Marshall upgraded Bandwidth Inc. (NASDAQ: BAND) from Underweight to Equalweight with a price target of $140.00 (from $145.00).
The analyst comments "With BAND now trading at a discount to SaaS peers that better accounts for lower margin and growth potential, we believe further discrete de-rating is likely limited. As we noted in our downgrade, we view BAND as a quality growth asset with ample runway ahead. Valuation had veered us cautious as the stock was trading at levels in-line with pure software comparables. While growth has not been our primary concern given newer international opportunities from organic investments and Voxbone, we have ultimately been more conservative on valuation given margin potential and value proposition. BAND is down -33% since peak (Oct 15,2020)vs. -11% for comm software group, creating a ~49% EV/Sales/g multiple valuation gap vs. the group."
Shares of Bandwidth Inc. closed at $126.74 yesterday.
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