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On Friday, Raymond (NSE:RYMD) James maintained an Outperform rating on Braze Inc (NASDAQ:BRZE) and increased the price target to $48 from $45. This adjustment follows Braze’s fourth-quarter results and its initial outlook for fiscal year 2026, which analysts found to be more positive than anticipated. The results came as a relief amid concerns about the broader economic environment and recent changes within Braze’s go-to-market (GTM) team. According to InvestingPro data, 16 analysts have recently revised their earnings estimates upward, with the company maintaining strong financial health metrics including a robust gross margin of 68.6%.
The firm’s decision to raise the price target is supported by several key performance indicators, including a rise in new customer additions and a net revenue retention rate that surpassed expectations by 100 basis points. Additionally, the company’s committed remaining performance obligations (cRPO) are expected to grow in the low-to-mid 20s percentage range. These factors reinforce Raymond James’ view of Braze as a company that continues to gain market share in its sector, supported by impressive revenue growth of 28.3% over the last twelve months.
Braze’s strategic move to acquire OfferFit for $325 million is also seen as a positive step. This acquisition is not only anticipated to contribute an additional 2% to the company’s growth but is also expected to expedite the advancement of Braze’s artificial intelligence capabilities. The analyst noted that while Braze’s stock value increased after hours, the current scenario still presents an attractive opportunity for investors. This sentiment is based on Braze’s history of conservative guidance, which may lead to better-than-expected performance and upward revisions in forecasts. InvestingPro analysis shows the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 1.99.
Furthermore, the company’s growth profile is expected to reach 20%, potentially exceeding that mark with mergers and acquisitions. The analyst also pointed out that Braze’s product leadership warrants a valuation that exceeds the current multiple of 5 times its calendar year 2026 estimated sales. For deeper insights into Braze’s valuation metrics and growth potential, investors can access comprehensive analysis through InvestingPro, which offers exclusive financial health scores and detailed Pro Research Reports covering over 1,400 US stocks.
In other recent news, Braze Inc. reported its fourth-quarter earnings for fiscal year 2025, exceeding analyst expectations. The company posted non-GAAP earnings per share of $0.12, outperforming the projected $0.05 loss, and reported revenue of $160.4 million, surpassing the expected $155.7 million. This marks a 22% year-over-year revenue growth, with subscription revenue contributing $153.9 million. Analysts at Citizens JMP maintained a Market Outperform rating for Braze with a $68 price target, highlighting the company’s strong financial performance. Additionally, Braze announced the acquisition of OfferFit, an AI decisioning company, in a deal valued at $325 million, expected to close in the second quarter of fiscal year 2026. The acquisition is projected to enhance Braze’s revenue growth by approximately 2 percentage points. Looking forward, Braze’s guidance for the first quarter of fiscal year 2026 includes an anticipated non-GAAP EPS of $0.04 to $0.05 on projected revenue of $158.0 million to $159.0 million, aligning closely with consensus estimates. The company’s full-year fiscal 2026 guidance forecasts non-GAAP EPS of $0.31 to $0.35 on revenue of $686.0 million to $691.0 million, indicating a 16% year-over-year growth.
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