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On Friday, Loop Capital analysts lowered the price target for Braze Inc (NASDAQ: NASDAQ:BRZE) stock to $45 from $75, while maintaining a Buy rating. Currently trading at $36.10, the stock sits well below the analyst consensus target range of $38-$75, with a strong Buy recommendation rating of 1.48. The analysts noted Braze’s consistent performance, marking the ninth consecutive quarter of solid execution, as the company adapts to the current macroeconomic environment.
Braze provided largely in-line revenue guidance for the second quarter and raised its fiscal year 2026 revenue guidance, factoring in a $11 million contribution from its acquisition of OfferFit. The company’s robust financial position is evident in its impressive 22.66% revenue growth and healthy 69.44% gross profit margin. The company appointed Ed McDonnell, a former Salesforce (NYSE:CRM) executive, as its new chief revenue officer, signaling a strategic move to bolster its leadership team. InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 1.92.
The company’s growth metrics, including current RPO (cRPO) growth and billings growth, remained robust for the first quarter. Braze continues to invest in verticalized solutions, focusing on retail and financial services, which is aiding its market strategy. The expansion of its flex credit model to all channels this year is expected to enhance customer engagement and drive early renewals. InvestingPro reveals additional positive indicators, including strong cash position relative to debt. Discover 6 more exclusive ProTips and comprehensive analysis in the Pro Research Report, available to subscribers.
Loop Capital analysts highlighted Braze’s strategic technology platform, which offers a real-time streaming data solution for large brands, replacing traditional e-mail-centric marketing platforms. The company is recognized for its advanced real-time data platform, which supports sophisticated analytics and positions Braze as an early adopter of generative AI technology. With a market capitalization of $3.79 billion, Braze demonstrates significant potential despite current unprofitability. For detailed valuation analysis and growth prospects, explore the full InvestingPro Research Report.
In other recent news, Braze Inc reported strong fiscal first-quarter results, exceeding consensus estimates. Despite ongoing challenges, the company achieved a 20% year-over-year increase in top-line growth, with committed recurring purchase orders rising by 24.3%. Analysts from Needham maintained a Buy rating with a $50 price target, citing optimism about business trends and the potential benefits from the OfferFit acquisition. However, Stephens, Oppenheimer, and Raymond (NSE:RYMD) James lowered their price targets to $41, $44, and $43, respectively, due to concerns about revenue quality and decelerating business metrics.
Stephens analysts highlighted a sequential deceleration in subscription revenue, while Oppenheimer pointed to a net revenue retention rate below 10%. Despite these concerns, Oppenheimer acknowledged Braze’s strong bookings and management’s effective navigation of market challenges. Raymond James noted potential headwinds from OfferFit affecting margins but maintained an Outperform rating, anticipating future growth.
DA Davidson reiterated a Buy rating and a $40 price target, emphasizing Braze’s robust top-line results and better-than-expected profitability. The company’s strategic acquisitions and commitment to growth were noted as key factors supporting its long-term objectives. These developments reflect a mixed but cautiously optimistic outlook among analysts regarding Braze’s future performance.
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