Piper Sandler has adjusted its price target for Weave Communications (WEAV, Financial), reducing it from $17 to $14, though it maintains an Overweight rating on the stock. This revision is part of a broader reassessment across the cloud applications and analytics sectors, which are currently facing significant challenges.
The primary factors contributing to this adjustment include ongoing obstacles related to tariffs, policy changes, and the integration of artificial intelligence technology. These elements have led to a dampening of investor confidence, especially as the industry experiences its fourth consecutive year of slowing growth.
Despite these issues, Piper Sandler notes that while the direct impact of tariffs on software models remains minimal, the challenges in AI adoption are proving to be a more considerable concern. This has resulted in valuation multiples dropping to their lowest levels in seven years, reflecting a broader retrenchment in the sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Weave Communications Inc (WEAV, Financial) is $17.14 with a high estimate of $20.00 and a low estimate of $13.00. The average target implies an upside of 89.21% from the current price of $9.06. More detailed estimate data can be found on the Weave Communications Inc (WEAV) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Weave Communications Inc's (WEAV, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Weave Communications Inc (WEAV, Financial) in one year is $11.76, suggesting a upside of 29.8% from the current price of $9.06. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Weave Communications Inc (WEAV) Summary page.
