Loop upgrades Weave to Buy on narrative shift to execution

Loop Capital analyst Mark Schappel upgraded Weave to Buy from Hold with a price target of $13, up from $5. The company’s narrative is shifting from a business transition and turnaround story to an execution story, the analyst tells investors in a research note. The firm believes management has laid the groundwork for accelerating revenue growth and profitability. Meanwhile, the stock’s valuation is such that the shares can advance through both multiple expansion and upside to estimates if Weave can grow longer-term software revenues in the 20% range and deliver expanding margins as Loop expects, writes the firm.