Raymond James Downgrades Weave on Timing of Catalysts and SMB Software Pressure

Core Viewpoint - Raymond James downgraded Weave Communications from Strong Buy to Outperform and reduced its price target to $10.00 from $12.00, reflecting a more challenging environment for small and mid-sized business software companies [1][2] Group 1: Company Performance and Initiatives - Weave continues to gain traction in growth initiatives, particularly in Specialty Medical, which has become its second-largest market by locations [2] - Progress in multi-office deployments includes a recent win covering over 600 locations, alongside a growing pipeline for its AI receptionist and automation solution, TrueLark [3] - Additional growth opportunities are identified through deeper integrations, improved product packaging, potential ARPC expansion via AI and payments offerings, and broader go-to-market partnerships [3] Group 2: Future Outlook - Although initiatives are expected to take time to materialize, there is a path toward re-accelerating growth and a return to a more consistent beat-and-raise pattern [4] - Shares are trading at 2x the 2026 sales estimate, but a full re-rating is unlikely until organic growth acceleration becomes more visible or the company shows a clearer path toward long-term profitability [4]