Stifel has adjusted its price target for Weave Communications Inc (NYSE:WEAV) downward to $9 from $11 but kept a Buy rating on the shares, which are trading around $5.21 and close to their 52-week low of $5.37. The stock is down 66% over the past year.
The analyst move followed Weave's mixed fourth-quarter financials and the company’s first public guidance for fiscal 2026. Notably, the midpoint of Weave’s adjusted EBITDA guidance came in above consensus expectations, a data point Stifel highlighted when communicating the revised target.
While the company remains loss-making at present, sell-side commentary collected in InvestingPro Tips indicates analysts expect Weave to turn profitable this year, underpinned by projected revenue growth of 17% and a gross profit margin of 72%.
Weave is actively integrating its recent artificial intelligence acquisition, TrueLark, into an AI receptionist product. Management is embedding that technology into the firm’s core platform and telephony stack, suggesting the company is working to make AI a native component of its communication and payments offering.
Stifel also outlined several avenues for expansion that could support longer-term revenue growth: deeper penetration into specialty medical verticals, more multi-location customer wins, and increased payments adoption among existing customers. Company management has stated that sales and marketing investments made during 2025 across multiple channels are expected to contribute additional growth potential in 2026.
The firm said that multiple compression was the proximate reason for cutting the price target, while explicitly maintaining a positive stance on the name. InvestingPro analysis included in the market commentary indicates that WEAV may appear undervalued at current prices, and subscribers can consult a Pro Research Report for a more detailed view.
Weave reported 17% year-over-year revenue growth for the second consecutive quarter. That momentum was driven, in part, by a 35% increase in payments revenue and record quarterly location additions within the specialty medical sector, along with contributions from the TrueLark acquisition.
Other broker activity has been active in the name. Piper Sandler cut its price target on Weave to $8 from $12 while keeping an Overweight rating. In a tangential development, EverCommerce received a downgrade at Raymond James, moving from Outperform to Market Perform after significant relative stock outperformance; despite that downgrade, EverCommerce shares have risen 15% over the past six months and 10% over the past year.
Taken together, the coverage changes and Weave’s guidance and product moves illustrate how analysts are weighing near-term valuation dynamics against longer-term growth and product integration efforts, particularly around AI-enabled reception and payments expansion.