Braze stock price target cut to $45 by Raymond James

On Thursday, Raymond (NSE:RYMD) James analyst Brian Peterson adjusted the price target for Braze Inc (NASDAQ:BRZE), lowering it to $45 from the previous target of $48, while maintaining an Outperform rating on the company’s shares. According to InvestingPro data, 16 analysts have recently revised their earnings estimates upward for the upcoming period, with price targets ranging from $39 to $75. Peterson cited a reduction in growth projections for fiscal years 2026 and 2027 as the primary reason for the adjustment, ahead of Braze’s fourth-quarter earnings report scheduled for March 27, 2025.

In his commentary, Peterson emphasized that the updated projections do not change his perspective on Braze’s position as a structural share gainer in the market. The company, currently valued at $3.76 billion, has demonstrated strong revenue growth of 28.31% over the last twelve months. He highlighted the company’s ability to capitalize on first-party data and real-time orchestration capabilities. Peterson also pointed out recent initiatives by Braze, such as the introduction of free trials and a new credits-based packaging system, which he believes could lead to improvements in acquiring new customers and retaining existing ones over time.

Despite the positive outlook on the company’s strategic moves, Peterson acknowledged that marketing budgets are facing challenges, prompting a more conservative stance on growth projections for the upcoming fiscal year. He noted that while the revised outlook falls below the consensus, the current valuation of approximately 4.5 times CY26 sales presents an attractive entry point for investors considering Braze’s potential for market share gains and an increasing margin profile. InvestingPro analysis indicates that Braze is trading near its Fair Value, with a healthy gross profit margin of 68.64%. For deeper insights into Braze’s valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Braze Inc, which specializes in customer engagement technology, enables brands to manage and optimize their marketing campaigns using real-time data. The company’s upcoming earnings report, scheduled in 7 days, will provide further insights into its performance and may influence market perceptions of its growth trajectory and financial health. InvestingPro subscribers can access additional real-time metrics and 8 more exclusive ProTips to make informed investment decisions ahead of the earnings announcement.

In other recent news, Braze announced a strategic partnership with Shopify (NYSE:SHOP) to enhance e-commerce engagement, integrating new features to provide real-time insights and personalized shopping experiences. This collaboration will allow brands to utilize a bi-directional flow of commerce insights, improving identity management and personalization using shopper data. Additionally, Braze plans to release new tools, including customizable landing page templates and no-code product personalization features, which will be available to Shopify customers in early 2025. Meanwhile, JMP Securities maintained a Market Outperform rating for Braze, with a price target of $68, highlighting the company’s record bookings for the fourth fiscal quarter of 2025 and potential to exceed revenue expectations. Raymond James also reiterated its Outperform rating with a $48 price target, acknowledging recent management changes but expressing confidence in Braze’s growth strategy and record fourth-quarter bookings. Both firms’ analyses underscore the anticipation surrounding Braze’s upcoming earnings report and its ability to meet or exceed market expectations. These developments reflect Braze’s ongoing efforts to expand its market initiatives and enhance its platform capabilities for e-commerce brands.

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