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On Friday, JPMorgan reiterated its Overweight rating on Braze Inc (NASDAQ:BRZE) with a steady price target of $47.00, aligning with the broader analyst consensus that shows strong confidence in the company. According to InvestingPro data, 16 analysts have recently revised their earnings upwards for the upcoming period, with price targets ranging from $39 to $75. The firm’s analysis highlighted Braze’s strong end-of-year performance, with total revenue surpassing the consensus by 3%, marking the most significant dollar beat in four years. Additionally, pro forma operating margins exceeded expectations by over 300 basis points, reaching a positive 5%.
Braze’s calculated remaining performance obligations (cRPO) grew by 23% year-over-year, indicating only a minor slowdown, while cRPO-based bookings growth remained consistent at 22% year-over-year. Moreover, total RPO-based bookings growth showed year-over-year improvement. The company also experienced an increase in new logo additions, which rose significantly for the first time in over two years. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 1.99, indicating robust liquidity, and holds more cash than debt on its balance sheet.
The company has observed stable demand trends and no significant changes in pipeline or close rates in the first quarter. Braze plans to invest more in its major verticals, starting with retail and consumer goods, by focusing research and development efforts to enhance its leadership position. The continued success of its flexible credit system has led to plans for further expansion within the year.
Although the dollar-based net retention rate (DBNRR) saw a slight sequential decrease of 2 points to 111%, Braze emphasized the positive trend between pre-zero interest rate policy (ZIRP) cohorts and post-ZIRP cohorts. The company expects that revenue will likely show an upturn before the reported DBNRR does.
In a strategic move to bolster its offerings, Braze has entered into an agreement to acquire OfferFit, a platform specializing in Agentic AI-based A/B testing. JPMorgan analysts concluded with a positive outlook on Braze’s long-term prospects, citing the company’s continuous innovation and its strengthening position as an essential first-party data provider. With a market capitalization of $3.86 billion and revenue growth of 28.31% in the last twelve months, Braze shows promising momentum. For deeper insights into Braze’s valuation and growth potential, including 6 additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Braze Inc. reported impressive fourth-quarter earnings for fiscal year 2025, significantly surpassing analyst expectations. The company achieved non-GAAP earnings per share of $0.12, compared to the anticipated $0.05 loss, and reported revenue of $160.4 million, exceeding the expected $155.7 million. This strong performance has led to positive revisions from analysts, with Stifel raising Braze’s stock target to $50, citing the company’s robust earnings and optimistic fiscal year 2026 outlook. Raymond (NSE:RYMD) James also increased its price target to $48, noting Braze’s growing market share and strategic moves.
The company’s acquisition of AI-decisioning firm OfferFit for $325 million is expected to enhance Braze’s product offerings and contribute an additional 2% to revenue growth. Analysts at Citizens JMP maintained a $68 price target, highlighting Braze’s improved non-GAAP operating margin and solid revenue growth. Braze’s fiscal year 2026 guidance projects a non-GAAP EPS of $0.31 to $0.35 on revenue of $686.0 million to $691.0 million, indicating a 16% year-over-year growth.
The company’s recent developments also include a focus on strategic acquisitions and technological advancements to bolster its competitive edge. These moves, coupled with the company’s strong quarterly results and optimistic guidance, have led to increased confidence among analysts about Braze’s future growth trajectory.
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