Raymond James downgraded Weave Communications to Market Perform from Outperform following Francisco Partners’ $600 million cash acquisition, announced last week and expected to close in Q4 2026.
The deal values Weave at $7.40 per share, a 34% premium to its prior closing price of $5.52 and a 31.83% weekly gain for the stock. The offer price remains slightly above Weave’s current trading level of $7.29. Francisco Partners’ bid reflects an enterprise value of approximately $600 million, or roughly 1.8 times revenue and 15.7 times free cash flow based on Stifel’s 2027 estimates.
Analysts at Raymond James, led by Alexander Sklar, cited limited prospects for a higher bid, noting the transaction price aligns with peer valuations. The firm’s price target was cut to $7.40 from $8.00.
Loop Capital and Stifel also downgraded the stock to Hold from Buy and Outperform, respectively, while B.Riley initiated coverage with a Buy rating and a $8.25 price target. Stifel’s revised target matches the acquisition price, reflecting a near-term ceiling given the deal structure.
Weave reported $257.79 million in revenue for its latest period, with 16.73% growth. InvestingPro’s fair value estimate stands at $7.81, suggesting modest upside even under current market conditions. The acquisition agreement was disclosed last week, with completion targeted for the fourth quarter of 2026.
