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Friday—DA Davidson analysts have reiterated a Buy rating with a $10.00 price target on Blaize Inc. (NASDAQ: BZAI) shares, representing significant upside from the current price of $2.50. The stock is trading near its 52-week low, having fallen from a high of $29.61. Following the company’s fourth-quarter earnings for fiscal year 2024, the firm remains positive about Blaize’s prospects, particularly as it prepares for a ramp-up in the second half of the year. InvestingPro data reveals the company maintains a healthy current ratio of 2.14, though its overall financial health score indicates caution.
Management at Blaize has indicated a growing customer interest across various verticals, which analysts believe underscores the significant market opportunity for AI-specific hardware. Key areas of application highlighted include the automotive sector, defense and security, and smart city projects. According to InvestingPro analysis, the company faces near-term challenges with an expected 37% revenue decline this year, though analysts maintain their positive long-term outlook. (Discover 13 more exclusive InvestingPro Tips for BZAI’s outlook.)
DA Davidson’s analysts assert that Blaize stands as a compelling investment in the burgeoning field of AI-enabled edge computing. They anticipate that as the AI industry evolves, there will be a substantial increase in workloads that can be supported by edge computing hardware, moving beyond the current cloud computing-bound applications.
The analysts’ continued support for Blaize is underpinned by their view that the company’s technology is well-positioned to capitalize on these market shifts. The reiterated $10 price target is based on 9 times the projected calendar year 2026 revenue, which is considered within a comparable range for the sector.
In other recent news, Blaize Holdings, Inc. announced its financial guidance, projecting revenue between $19 million to $50 million for fiscal year 2025 and a significant increase to $105 million to $140 million for fiscal year 2026. The company expects non-GAAP gross margins to range from 46% to 50% during these years. In a strategic move, Blaize has partnered with Turbo Federal to enhance the integration of AI within the U.S. Department of Defense, aiming to meet the national security needs through AI technology. Additionally, Blaize has formed a joint technology agreement with South Korea’s KAIST Institute for NanoCentury to advance edge AI computing applications in various sectors.
DA Davidson has initiated coverage on Blaize with a Buy rating and a price target of $10.00, reflecting confidence in the company’s potential within the AI inference market. This endorsement highlights Blaize’s robust technology platform and its capability to expand across diverse applications. Blaize also appointed Lane Bess as chairman of its board of directors, bringing his extensive experience in technology and investments to the company. These developments underscore Blaize’s ongoing efforts to expand its market presence and enhance its technological offerings in the AI sector.
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