Procore signs multi-year strategic collaboration agreement with AWS
On Wednesday, Citi analysts revised their price target on Braze Inc (NASDAQ:BRZE) shares, decreasing it slightly to $50 from the previous $51, while continuing to endorse the stock with a Buy rating. Currently trading at $37.98, the stock sits well below the broader analyst target range of $39-$75. According to InvestingPro data, 16 analysts have recently revised their earnings estimates upward for the upcoming period. The adjustment comes amid expectations of a conservative growth guide for the fiscal year 2026.
Tyler Radke of Citi indicated that Braze’s announcement of record bookings suggests a robust conclusion to the fiscal year 2025. The company has demonstrated strong performance with revenue growth of 28.31% over the last twelve months. However, the forecast for the upcoming fiscal year is predicted to be cautious, with year-over-year growth anticipated to align with consensus projections at around 17%. This conservative stance is attributed to the ongoing uncertain macroeconomic climate and recent changes in the company’s sales leadership.
Despite these factors, Citi has decided to largely maintain its estimates for Braze, only making minor revisions to non-GAAP EBIT predictions for fiscal year 2026, based on more restrained expectations for sales and marketing leverage. The new price target reflects a modest reduction, which Radke explained as a result of updated inputs for software valuation regression, considering the lower sector movements quarter-to-date.
Citi reaffirmed its Buy rating for Braze stock, expressing confidence in the company’s potential to reaccelerate growth in the second half of the fiscal year. The firm’s analysts appear to remain optimistic about Braze’s performance despite the slight adjustment in the price target and the cautious growth outlook for the upcoming year.
In other recent news, Braze Inc is set to release its fiscal fourth-quarter 2025 earnings report, with several analysts offering differing projections. DA Davidson has maintained a Buy rating with a $50 price target, highlighting Braze’s potential to outpace traditional marketing solutions despite a conservative outlook for fiscal year 2026. Oppenheimer has also reaffirmed an Outperform rating with a $51 target, noting expectations of modest outperformance in the upcoming earnings but cautioning about potential risks with revenue growth guidance. Meanwhile, Raymond (NSE:RYMD) James has adjusted its price target to $45, citing reduced growth projections for fiscal years 2026 and 2027, yet maintaining an optimistic view of Braze’s market position.
Braze’s strategic partnership with Shopify (NYSE:SHOP) aims to enhance e-commerce engagement through improved real-time insights and personalized shopping experiences, which could influence future performance. JMP Securities has maintained a Market Outperform rating with a $68 price target, emphasizing Braze’s record bookings and the potential for surpassing revenue expectations. The upcoming earnings report is anticipated to provide crucial insights into Braze’s financial health and growth trajectory, with investors keenly observing if the company can meet or exceed market expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.