DA Davidson maintains Buy on Blaize stock with $10 target

Published 15/05/2025, 15:10
DA Davidson maintains Buy on Blaize stock with $10 target

On Thursday, DA Davidson sustained a positive outlook on Blaize Inc. (NASDAQ:BZAI), reaffirming a Buy rating and a $10.00 price target, representing significant upside from the current price of $2.59. The firm’s stance comes in the wake of Blaize’s impressive first-quarter earnings for 2025, which showcased revenue growth surpassing the company’s own forecasts. According to InvestingPro data, the stock has shown strong momentum with a 12.1% gain over the past week.

Blaize, a company specializing in on-device artificial intelligence (AI) solutions, has reported strong quarterly results, with significant top-line growth that outperformed the guidance provided by its management. While the company’s gross profit margin stands at an impressive 62.7%, InvestingPro analysis indicates the company is quickly burning through cash, with current assets covering only 39% of short-term obligations. This performance is a testament to the company’s successful conversion of its deal pipeline, which indicates a rising demand for its AI offerings.

The AI technology firm is particularly gaining traction in areas critical to domestic defense, as well as in smart-city projects, notably in South Korea. DA Davidson’s analysis suggests that Blaize’s products are finding increased relevance and application in these sectors, which is a driving factor behind the firm’s reiterated Buy rating and price target.

Blaize’s recent financial achievements are reflective of the company’s strategic focus on expanding its presence in the AI market and capitalizing on the growing needs for advanced, on-device AI capabilities. The company’s ability to exceed expectations in terms of revenue is seen as a strong indicator of its potential for further growth and market penetration.

The endorsement from DA Davidson underscores the confidence in Blaize’s business model and its prospects in the burgeoning field of AI. The reiterated price target of $10.00 aligns with the analyst’s assessment of the company’s value and future performance based on the current market conditions and Blaize’s strategic initiatives.

In other recent news, Blaze Holdings Inc. reported its Q1 2025 earnings, revealing a revenue increase to $1 million, up from $549,000 in the same quarter last year. Despite this growth, the company faced a significant net loss of $147.6 million, compared to a $16.7 million loss in Q1 2024. Blaze Holdings has been focusing on expanding globally, with a strategic emphasis on smart city AI chip deployment. The company projects Q2 2025 revenue between $1.5 million and $1.7 million, with full-year 2025 revenue guidance ranging from $19 million to $50 million. Blaze Holdings is also working on a new turnkey vertical AI solution stack designed to streamline deployment in sectors like defense and smart infrastructure. Additionally, partnerships with firms such as CBIZT in South Korea and TurboFederal in the U.S. have been highlighted as part of their strategic engagements. The company aims to improve its EBITDA each quarter and has extended its cash runway to the first half of 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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