BlackLine stock rating upgraded to Outperform by Raymond James on growth outlook

Published 29/07/2025, 10:30
BlackLine stock rating upgraded to Outperform by Raymond James on growth outlook

Investing.com - Raymond (NSE:RYMD) James upgraded BlackLine (NASDAQ:BL) from Market Perform to Outperform on Tuesday, setting a price target of $67.00. According to InvestingPro data, BlackLine maintains strong fundamentals with a healthy Piotroski Score of 8 and impressive gross margins of 75%.

The upgrade reflects Raymond James’ view that BlackLine is positioned for favorable growth in the second half of 2025, with potential acceleration extending into 2026. The firm believes current consensus estimates are de-risked and sees multiple tailwinds supporting future performance. With a PEG ratio of 0.8, InvestingPro analysis suggests the stock is trading at an attractive valuation relative to its growth prospects.

Key growth drivers cited include BlackLine’s SAP partnership with newer opt-out benefits, underappreciated pricing and packaging advantages, enterprise deal momentum, emerging public sector opportunities, and easing comparisons, particularly for bookings.

Raymond James notes that while a growth acceleration is the more likely short-term catalyst rather than an outright sale, the potential for an acquisition remains a possibility over the next 12-18 months.

The firm also highlighted BlackLine’s elevated short interest of 13% (12 days to cover), suggesting potential for amplified upside movement around second-quarter 2025 results if the company shows progress toward its targeted 13-16% growth range.

In other recent news, BlackLine, Inc. has announced several changes to its Board of Directors, appointing Greg Hughes and Saranga "Sam" Balaji. Hughes, who previously served as CEO of Veritas, joined the board effective July 25, 2025, bringing with him experience in transitioning to subscription pricing models and expanding cloud business. Balaji, a former Global CEO of Deloitte Consulting, joined the board on June 13, 2025, and will also serve on the Technology and Cybersecurity Committee. Analyst firms have also weighed in on BlackLine’s prospects. Citizens JMP has reiterated its Market Outperform rating, maintaining a price target of $80, based on five positive data points from their due diligence. Meanwhile, BMO Capital has kept its Market Perform rating with a $53 price target, citing optimism from BlackLine’s leadership about potential business growth. These developments reflect ongoing strategic shifts and analyst confidence in BlackLine’s future trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.