UPDATE: Raymond James Downgrades Weave Communications Inc (WEAV) to Market Perform
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Raymond James analyst Brian Peterson downgraded Weave Communications Inc (NYSE: WEAV) from Outperform to Market Perform.
The analyst comments "We’re downgrading shares of WEAV from Outperform to Market Perform following 4Q21 results that fell short of expectations, with an initial 2022 outlook that implies a much more pronounced reset to growth/margins than we anticipated. Specifically, the 19% growth outlook for 2022 is 9% below the street, with the deceleration reflecting 1) elevated sales force churn; 2) lower productivity; and 3) changes in the go-to-market motion that should yield more profitable growth over time. We’re cognizant that shares are already well below the company’s IPO price and are far from expensive at 3x our revised CY23 revenue estimate, but the visibility into the growth/margin profile remains too limited for us to ignore. Given that dynamic, we’re stepping to the sidelines."
Shares of Weave Communications Inc closed at $9.33 yesterday.
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