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Investing.com - Goldman Sachs has reiterated a Buy rating and $52.00 price target on Braze Inc (NASDAQ:BRZE) following the company’s strong second-quarter fiscal year results. According to InvestingPro data, the company currently trades at a market capitalization of $3.07 billion, with analyst targets ranging from $38 to $68.
Braze reported revenue that exceeded Street expectations by 5%, with 24% year-over-year growth and 22% organic growth, representing a 200 basis point improvement from the first quarter. Operating margin came in approximately 300 basis points above FactSet estimates. InvestingPro data shows the company maintains a healthy gross profit margin of 68.79% and holds more cash than debt on its balance sheet.
The company’s total RPO (remaining performance obligation) grew 25% year-over-year on an organic basis, while current RPO increased 27% year-over-year (25% organic), up from 24% in the first quarter. Braze guided fiscal year 2026 revenue 2% above Street expectations.
Braze also raised its EBIT margin guidance to approximately 3.5% from a previous estimate of about 1%, demonstrating a return to the company’s margin expansion strategy despite its OfferFit acquisition. The stock was indicated up 16% following the announcement.
Goldman Sachs views Braze as a "top pick" and anticipates potential share gains accelerating in 2025 due to customers being more willing to upgrade marketing technology stacks, stabilization in net revenue retention, and targeted improvements in sales and marketing to reduce adoption barriers. While currently unprofitable, InvestingPro analysis indicates analysts expect the company to turn profitable this year. Get access to 12+ additional exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.
In other recent news, Braze Inc. reported strong financial results for the second quarter of fiscal year 2026, significantly surpassing market expectations. The company achieved an earnings per share of $0.15, well above the forecasted $0.03, and revenue reached $180.1 million, exceeding projections by nearly 5%. Mizuho responded to these robust results by raising its price target for Braze to $45, citing strong demand and better-than-expected moderation in down-selling. UBS, while lowering its price target to $43, maintained a Buy rating, noting Braze’s ability to sustain organic revenue growth in the 20% range. TD Cowen also increased its price target to $40, highlighting Braze’s "biggest beat in 6 quarters" and encouraging signs of stabilizing net revenue retention levels. Oppenheimer reiterated an Outperform rating with a $38 price target, emphasizing the company’s strong quarterly performance. These developments reflect a positive outlook from analysts despite varying price targets.
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