Baird downgrades Bandwidth and Twilio to focus on cash flow (NASDAQ:BAND)

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Bandwidth (NASDAQ: BAND) shares fell 10%, On Monday, after research firm Robert W. Baird downgraded its rating on the communications software company to lack of short-term catalyst and limited profitability concerns.

Bandwidth : Analyst William Power downgraded Bandwidth to Neutral from its previous outperform rating with a price target lowered to $25 from $38. The revised target implies a potential upside of 18.5% from the stock’s last close.

It comes just after Needham changed its rating to Hold from Buy on Bandwidth (BAND), following weak first-quarter results.

“[Bandwidth] has been a story with many complex financial elements in recent years, and given the latest disclosures, we believe recent results reflect a significant decline in the quality of revenue growth,” analyst Ryan Koontz wrote in a statement. note to customers.

Seeking Alpha Quant Rating System signaled a Bandwidth Warning well in advance of March 1, 2022, indicating that BAND was at high risk of performing poorly due to decelerating momentum and negative BPA revisions versus to other actions of communication services.

Quant’s strong sell on BAND distinguishes equity analysis from Wall Street’s “buy.”

BAND stock has lost 65% in the last 3 months and 81% in 1 year compared to the S&P 500 -2.51% change.

Twillio: Baird’s William Power also demoted Twilio (NYSE: TWLO) to Neutral from Outperform with a price target of $120, down from $155 in a research note released on Monday.

The analyst says that in this “risky environment” he is shifting his software focus to companies with “global platforms, competitive moats, and strong free cash flow and balance sheets.”

Twilio Actions are down 9% in early trading Mondayadding up to 64% decline recorded over the last 6 months.

Seeking Alpha’s Quantitative Strategies team has raised its Hold from Strong Sell rating by 2 points since the start of the month. Quick look at factor scores:

TWLO’s Wall Street rating is a strong buy while Seeking Alpha’s authors maintain a buy.

Earlier today, Twilio names Kim his chief marketing officer

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