Piper Sandler on Thursday moved down its 12-month price target for Weave Communications Inc (NYSE:WEAV) to $8 from $12, while leaving its Overweight recommendation in place.
The firm’s adjustment comes amid mixed operational signals from the communications and payments platform. Weave reported its second straight quarter of 17% year-over-year revenue growth. Management attributed that performance to several factors: payments growth estimated at 35% year-over-year, record quarterly location additions within the specialty medical vertical, and the contribution from the recently completed TrueLark acquisition.
Even with those drivers, the stock has underperformed. Shares traded at $5.74, implying a market capitalization of $445 million, and have fallen 66% over the past year.
Looking ahead, Weave provided fiscal 2026 guidance for top-line growth of 14.8% year-over-year, a pace that is roughly in line with consensus expectations but represents a deceleration from the 17% growth achieved in fiscal 2025. The company’s operating income guidance points to roughly 190 basis points of operating margin expansion in the coming year.
InvestingPro analysis referenced in the company update indicates the stock is currently undervalued, and analysts expect the company to move to profitability this year. A cited 72% gross profit margin is described as a supporting factor in that transition.
Piper Sandler identified two primary growth levers for fiscal 2026: AI-enabled products and continued expansion in the specialty medical vertical. The firm expects an AI omnichannel receptionist product to reach general availability in the first half of 2026, with AI offerings beginning to influence top-line growth in the second half of the year. The specialty medical segment is noted as Weave’s fastest growing area; the company has initially targeted four of 29 total sub-verticals within that broader category.
In separate coverage, Raymond James downgraded EverCommerce Inc from Outperform to Market Perform, citing valuation concerns after the stock significantly outperformed peers. EverCommerce shares gained 15% over the past six months and 10% over the past year. By comparison, the iShares Expanded Tech-Software Sector ETF fell 2% over six months and rose 6% over the past year. Raymond James noted there were no recent earnings or revenue results, and no mergers or acquisitions were announced in conjunction with the downgrade. No additional major company news was highlighted in the firm’s update.
Taken together, the analyst actions reflect a market balancing near-term execution and product timing against expectations for margin improvement and future revenue contributions from AI and specialty medical initiatives.