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Investing.com - BMO Capital raised its price target on BlackLine (NASDAQ:BL) to $63.00 from $60.00 on Wednesday, while maintaining a Market Perform rating on the financial software company’s shares. According to InvestingPro analysis, BlackLine appears undervalued at its current price of $52.05, with the stock showing a strong 23.45% return over the past year.
The price target adjustment follows BlackLine’s recent quarterly results, which BMO Capital described as consistent with a company whose growth has stabilized. With revenue growth of 8.93% and a healthy gross profit margin of 75.3%, the company maintains strong fundamentals. The firm indicated that more meaningful progress on BlackLine’s business re-engineering efforts is likely to emerge in coming quarters.
BMO Capital noted it remains comfortable taking a patient approach as it looks for additional evidence of improvement in BlackLine’s performance. The firm made modest changes to its estimates for the company while incrementally raising its target price.
The analyst firm had previously outlined key vectors BlackLine is managing in its efforts to reaccelerate business growth across both sales and product offerings. These points were detailed in BMO’s earlier quarterly preview and June conference coverage.
BlackLine provides cloud-based solutions for financial close management, accounting automation, and intercompany governance, serving mid-sized businesses and large enterprises globally. The company maintains a moderate debt level with a current ratio of 1.66, and analysts expect it to remain profitable with projected earnings of $2.62 per share in 2025.
In other recent news, BlackLine Inc. reported its second-quarter 2025 earnings, surpassing revenue expectations by posting $172 million compared to the forecasted $170.9 million. The company also raised its full-year revenue guidance, signaling confidence in its future performance. Following this, Goldman Sachs raised its price target on BlackLine to $48 from $45, although it maintained a Sell rating. The adjustment was attributed to BlackLine’s modestly better-than-expected revenue and profitability, driven by pipeline improvements and larger deal sizes. Additionally, DA Davidson assumed coverage on BlackLine with a Neutral rating and set a price target of $56.00. The firm noted that BlackLine’s go-to-market investments are showing strength in its pipeline. These developments indicate a period of strategic growth and adjustment for BlackLine.
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