From Financial Modeling Prep: 2025-05-05 07:00:00

Weave Communications, Inc. has been upgraded to a “Strong Buy” by Loop Capital Markets, with a price target of $18, reflecting confidence in its strategic maturity and growth potential. The company reported strong revenue retention in Q3 2024, with gross and net retention levels at 92% and 98%, respectively, and a gross margin expansion to 72%. Weave’s strategic partnership with Patterson Dental and increased vendor interest, along with a reasonable valuation with a forward EV/Sales multiple of 5.5x, make it an attractive investment opportunity. The company offers a customer communications and engagement platform for small and medium-sized businesses in the U.S. and Canada, streamlining operations with features like a customized phone system and payment processing. Despite a slight decrease in the stock’s consensus target price, Weave Communications has shown promising financial performance, leading to the recent “Strong Buy” rating. In Q3 2024, the company reported strong revenue retention levels and a gross margin expansion, setting the stage for sustainable profitability improvements. Weave’s recent earnings call highlighted robust growth in revenue, bookings, and net revenue retention rate, positioning the company well in the growing healthcare marketing and communications market. With a strategic partnership in place and a reasonable valuation, Weave Communications presents an attractive investment opportunity with a price target of $18.



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