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On Friday, DA Davidson reaffirmed its positive stance on Braze Inc (NASDAQ:BRZE), maintaining a Buy rating and a $50.00 price target for the company’s shares. The decision followed Braze’s announcement of strong new business momentum and better-than-expected profitability as it concluded its fiscal year 2025. According to InvestingPro data, analyst targets for Braze range from $39 to $75, with 16 analysts recently revising their earnings estimates upward for the upcoming period. The company’s emphasis on driving profitable growth was highlighted as a key factor in this performance.
Analysts at DA Davidson noted that despite the uncertain macroeconomic environment, Braze’s management provided a conservative guidance for fiscal year 2026. They believe there is potential for upside, given the favorable secular dynamics affecting the industry. The firm’s projections are based on an anticipated 6.5 times FY26 revenue. InvestingPro data shows impressive revenue growth of 28.31% in the last twelve months, with analysts forecasting the company to achieve profitability this year.
In addition to its financial achievements, Braze recently declared its intention to acquire Offerfit, a move valued at $325 million. This acquisition is seen as a strategic fit by DA Davidson, as Offerfit’s complementary offerings are expected to provide substantial cross-selling opportunities. The acquisition aligns with Braze’s growth strategy and could contribute to the company’s continued success.
The analyst’s commentary underscored the significance of the proposed acquisition, "Braze exited FY25 with strong new business momentum and better than expected profitability results highlighting the company’s focus on driving profitable growth going forward. We believe management gave a conservative FY26 guide given macro uncertainty with potential upside stemming from favorable secular dynamics. In conjunction with earnings Braze announced the proposed acquisition of Offerfit for $325M which we see as a positive, given its complementary offerings and the potential cross-selling opportunities. We are reiterating our BUY rating and $50 PT (6.5x FY26 revenue)."
Braze’s strategic moves, including the Offerfit acquisition and its financial performance, have set the stage for what DA Davidson sees as a continued trajectory of growth, reinforcing their confidence in the company’s stock. With a strong current ratio of 1.99 and more cash than debt on its balance sheet, the company appears well-positioned for expansion. As the market digests this information, investors will watch how these developments influence Braze’s position in the competitive landscape of customer engagement solutions. For deeper insights into Braze’s valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Braze Inc has reported a 22% year-over-year revenue increase in its fourth-quarter financials, adding 85 new customers and achieving a 23% growth in committed remaining performance obligations. The company has also announced its acquisition of AI-decisioning firm OfferFit for $325 million, which is expected to enhance its product offerings and market position. Analysts at UBS, Stifel, Oppenheimer, Needham, and JPMorgan have all maintained positive ratings on Braze, with price targets ranging from $47 to $51, following the company’s strong quarterly performance and forward-looking guidance.
Stifel analysts raised their price target to $50, noting Braze’s earnings beat and optimistic fiscal year 2026 outlook. Oppenheimer maintained an Outperform rating, highlighting Braze’s robust fourth-quarter results and strategic acquisition, although they cautioned about the risks associated with the OfferFit deal. Needham analysts also kept a Buy rating, emphasizing Braze’s best quarterly performance in over a year and the strategic importance of the OfferFit acquisition.
JPMorgan reiterated an Overweight rating with a $47 target, pointing out Braze’s significant revenue beat and improved operating margins. The company’s calculated remaining performance obligations grew by 23%, and new customer additions were the highest in over two years. Despite some concerns about slowing business and net revenue retention rates, analysts remain optimistic about Braze’s potential for growth and innovation in the customer engagement sector.
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