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On Friday, Citi analyst Tyler Radke increased the price target for Braze Inc (NASDAQ:BRZE) shares to $55.00, up from the previous target of $50.00, while reiterating a Buy rating on the stock. According to InvestingPro data, analyst targets for Braze range from $39 to $75, with a strong consensus recommendation of 1.5 (Buy). The company maintains robust financial health with a current ratio of 1.99, indicating strong liquidity. The adjustment follows Braze’s robust performance in the fiscal year 2025, where the company’s trailing twelve-month Dollar-Based Net Retention Rate (DBNR) reached 111%, surpassing the anticipated 110%. This growth indicates a higher revenue beat magnitude than what was observed in the third quarter, attributed to the strength in net new business.
Braze’s after-hours stock movement is seen as a positive indicator of the company’s organic momentum and its solid guidance for organic growth. For fiscal year 2026, Braze has guided an organic growth of 16%, which notably does not account for contributions from the recent acquisition of OfferFit, a decisioning-engine startup. The guidance was well received as it exceeded market expectations. InvestingPro data shows the company has demonstrated strong execution with revenue growth of 28.31% and an impressive gross profit margin of 68.64% in the last twelve months.
The company’s non-GAAP operating income guidance for fiscal year 2026 stands at $27.5 million at the midpoint, which is approximately 4% operating margin and about $9 million above consensus, aligning more closely with Citi’s estimates. The acquisition of OfferFit is expected to contribute approximately two percentage points to Braze’s growth in FY26. OfferFit’s revenue tripled last year, leading Citi to believe there is considerable potential for upward revisions to financial forecasts.
In light of the strong business momentum witnessed in the fourth quarter and the strategic acquisition of OfferFit, Citi has slightly raised its top-line estimates for Braze for fiscal year 2026. Consequently, the price target for Braze stock has been adjusted to $55, up from the previous target of $50. InvestingPro subscribers can access 16 additional analyst revisions and comprehensive financial metrics in the Pro Research Report, providing deeper insights into Braze’s $3.8 billion market cap business.
In other recent news, Braze Inc. reported a strong fourth-quarter performance with a 22.5% revenue growth, which led TD Cowen to raise its price target for the company to $47. The company’s financial results also prompted DA Davidson and Stifel to maintain their Buy ratings, with price targets of $50. DA Davidson highlighted Braze’s better-than-expected profitability and strong new business momentum as key factors for their continued positive outlook. UBS and Oppenheimer both reiterated their Buy and Outperform ratings, respectively, each setting a price target of $51, emphasizing Braze’s robust revenue growth and strategic initiatives.
Additionally, Braze announced its acquisition of OfferFit for $325 million, a strategic move expected to enhance its AI capabilities. This acquisition aligns with the company’s growth strategy and is seen as a positive development by analysts from firms like DA Davidson and Stifel, who noted the potential for cross-selling opportunities and product enhancement. Despite some concerns about macroeconomic conditions, Braze’s management provided guidance for fiscal year 2026, projecting a 16% revenue increase, which aligns with market expectations. Analysts from UBS and Oppenheimer remain optimistic about Braze’s future prospects, citing improved execution and potential for increased market share. As these developments unfold, investors are closely monitoring Braze’s strategic moves and financial performance in the competitive landscape.
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