BlackLine stock price target maintained at $80 by Citizens

Investing.com - Citizens maintained its Market Outperform rating and $80.00 price target on BlackLine (NASDAQ:BL) on Tuesday. The target represents significant upside potential from the current price of $54.56, with InvestingPro data indicating the stock is currently trading below its Fair Value.

The firm cited BlackLine’s suite of invoice-to-cash and record-to-report solutions, now more accessible through Studio360, as a key reason for its positive outlook. With a robust gross margin of 75.38% and revenue growth of 7.99%, BlackLine’s financial metrics support its market position. Citizens also highlighted BlackLine’s large market opportunity, estimated at $45 billion.

The research firm expressed confidence in BlackLine’s artificial intelligence strategy with Verity, which could help drive adoption of Studio360 and transition the company from seat-based pricing to a platform plus consumption model.

Citizens noted its favorable view of BlackLine’s leadership team, including CEO Owen Ryan, Founder Therese Tucker, Chief Commercial Officer Stuart Van Houten, and CFO Patrick Villanova, who previously served as Chief Accounting Officer.

The firm also pointed to BlackLine’s potential as an acquisition target, referencing a reported bid from SAP and the approximately 9% ownership position (about 5.7 million shares) held by Los Angeles-based private equity firm Clearlake Capital.

In other recent news, BlackLine Inc. has been in the spotlight following a report that SAP SE made a takeover approach earlier this year, valuing the company in the high $60s per share. Despite the interest, BlackLine reportedly rejected the offer, and there are no ongoing discussions. On the earnings front, BMO Capital raised its price target for BlackLine to $63, citing stable growth in the company’s recent quarterly results. Analyst firm Citizens JMP reiterated a Market Outperform rating with an $80 price target, highlighting the accessibility of BlackLine’s solutions through its Studio360 platform. Meanwhile, Truist Securities maintained a Hold rating with a $50 price target, noting BlackLine’s focus on strategic initiatives and new AI-based tools. Cantor Fitzgerald kept a Neutral rating and a $58 price target, mentioning the introduction of Verity AI as a positive development for BlackLine’s AI offerings. These updates reflect ongoing interest and varied analyst perspectives on BlackLine’s market position and strategic direction.

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