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On Friday, DA Davidson analysts reiterated their Buy rating on Braze Inc (NASDAQ: NASDAQ:BRZE) stock following the company’s strong earnings performance. The analysts maintained their price target of $40.00, highlighting the company’s robust top-line results and better-than-expected profitability. The company, currently valued at $3.79 billion, has demonstrated impressive revenue growth of 22.66% and maintains a healthy gross profit margin of 69.44%.
Braze recently reported earnings that surpassed expectations, despite ongoing investments in headcount and research and development aimed at supporting long-term growth. The company also completed the acquisition of Offerfit during the quarter, which is expected to facilitate expansion deals with existing customers. According to InvestingPro data, Braze maintains strong liquidity with a current ratio of 1.92, providing financial flexibility for its growth initiatives.
The analysts noted that Braze’s fiscal year 2026 outlook remains unchanged, describing it as "derisked" after adjusting for the first-quarter revenue beat and anticipated contributions from Offerfit. The price target is based on a 5.5x multiple of fiscal year 2026 revenue.
Braze’s continued commitment to growth and its recent acquisition are seen as key factors in the decision to maintain the Buy rating and price target. The company’s performance and strategic moves are expected to support its long-term objectives.
In other recent news, Braze Inc. reported robust financial results for the first quarter of fiscal year 2026, with earnings per share (EPS) of $0.07, surpassing the anticipated $0.05. The company’s revenue also exceeded expectations, reaching $162.1 million compared to the forecasted $158.66 million. This performance marks Braze’s fourth consecutive quarter of non-GAAP net income profitability, with a net income of $7 million and nearly $23 million in free cash flow. Braze has raised its full-year revenue guidance, even after accounting for the recent acquisition of OfferFit, which is expected to contribute approximately 2% to revenue growth. However, the company’s full-year operating margins were adjusted lower by about 300 basis points due to the acquisition costs. JPMorgan analysts recently revised their outlook on Braze, lowering the stock price target to $45 from $47 but maintaining an Overweight rating. They noted that while the acquisition may temporarily impact operating margin expansion, it is considered a strategic long-term move. The company continues to experience strong customer growth, with total customers reaching 2,342, including a 24% increase in large customers.
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