Bandwidth Soars on Salesforce Deal, but Valuation Debate Rages On

Bandwidth (BAND) has seen its share price gain momentum after expanding its collaboration with Salesforce, becoming the first certified carrier for the CRM giant's AI-powered Contact Center as it rolls out across over 25 international markets.

The company's recent trading has been choppy, with a 2.27% increase on the day and 14.81% over the past week, yet still down 7.21% across 30 days and 1.49% over 90 days.

However, its year-to-date share price return of 252.18% and 3-year total shareholder return of 306.49% indicate strong longer-term momentum that this Salesforce expansion appears to have re-energised.

The current valuation debate surrounds whether the Salesforce-driven excitement is already factored into the price, with some analysts arguing that Bandwidth's fair value could be as high as $67.25, which would imply it is currently 26% undervalued.