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Investing.com - TD Cowen has lowered its price target on Braze Inc (NASDAQ:BRZE) to $38.00 from $43.00 while maintaining a Buy rating ahead of the company’s second-quarter earnings report scheduled for September 4. The stock, currently trading at $26.93, has seen significant price pressure, with InvestingPro data showing analyst targets ranging from $35 to $68.
The research firm expects Braze to deliver quarterly results with upside in line with the approximately 2.5% trailing twelve-month average, suggesting organic growth will remain stable quarter-over-quarter at around 20%. This aligns with the company’s current revenue growth rate of 22.66% and healthy gross margin of 69.44%.
TD Cowen noted that while its sales headcount data was "constructive" and read-throughs from related companies were "directionally positive," it suspects macro and demand conditions for Braze remain mostly unchanged compared to recent quarters. InvestingPro analysis suggests potential upside, with additional insights available in the comprehensive Pro Research Report, covering what matters most for this $3B market cap company.
The firm cited valuation pressure across the SaaS group as the reason for the price target reduction, though it still views Braze’s valuation as attractive at approximately 4x EV/CY26E Sales against mid-to-upper teens organic growth forecasts.
TD Cowen indicated that investors continue to watch for stabilization in Braze’s net revenue retention (NRR), noting that management had previously indicated they were not yet ready to call a trough, which could limit significant stock appreciation or re-rating.
In other recent news, Braze Inc has been the focus of several analyst reports adjusting their price targets for the company. Cantor Fitzgerald lowered its price target to $35, citing concerns over AI disruption, while maintaining an Overweight rating. Citi also reduced its price target to $50 due to lower EBIT estimates but kept a Buy rating. TD Cowen adjusted its target to $43, pointing to revenue concerns following Braze’s latest earnings report, though the firm noted the company’s raised fiscal year 2026 guidance. Loop Capital decreased its price target significantly to $45 from $75, highlighting Braze’s consistent performance and recent leadership changes, including the appointment of Ed McDonnell as chief revenue officer. Stephens analysts set their new price target at $41, reflecting sequential deceleration in subscription revenue, yet acknowledged Braze’s projected 19% growth in the 2026 guide. Despite these adjustments, most firms maintained positive ratings, indicating confidence in Braze’s long-term potential amidst current challenges. The integration of OfferFit and its expected impact on margins was a common theme in these reports. These developments provide investors with a nuanced view of Braze’s current position in the market.
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