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On Friday, Needham analysts reiterated their Buy rating and maintained a $50 price target for Braze Inc (NASDAQ: NASDAQ:BRZE), representing significant upside from the current stock price of $36.10. According to InvestingPro data, analyst targets for the stock range from $38 to $75, with the company currently appearing fairly valued based on InvestingPro’s Fair Value model. The decision follows the company’s release of its first-quarter results, which showed strong performance across various metrics.
Braze reported a 24.3% year-over-year increase in committed recurring purchase orders (CRPO), benefiting from a robust renewals quarter. This aligns with the company’s overall revenue growth of 22.66% and impressive gross profit margin of 69.44%. Net revenue retention (NRR) saw a slight decline due to churn from zero interest rate policy (ZIRP) customers. Despite this, the company expressed optimism about overall business trends and anticipated an inflection point for NRR after revenue growth accelerates in the second half of the year.
The company’s first-quarter subscription revenue increased by $1 million quarter-over-quarter, marking the lowest increase since its initial public offering. However, the second-quarter expectations are in line with historical trends, suggesting the first quarter’s results were more backloaded. InvestingPro subscribers can access 6 additional key tips about Braze’s financial position and growth prospects, along with comprehensive analysis in the Pro Research Report.
Braze’s management shared positive insights regarding platform technology enhancements, particularly from the OfferFit acquisition. They believe this could contribute to growth in the fiscal year 2027. Guidance for the year remained mostly unchanged after considering the OfferFit acquisition and the first-quarter performance.
Overall, Needham analysts remain optimistic about Braze’s potential for growth, supported by stable customer metrics and strategic acquisitions.
In other recent news, Braze Inc. has reported impressive financial results for the first quarter of fiscal year 2026, exceeding analysts’ expectations. The company achieved an earnings per share of $0.07, surpassing the forecast of $0.05, and reported revenue of $162.1 million, which was above the anticipated $158.66 million. This strong performance was accompanied by a nearly 20% year-over-year revenue increase. Additionally, Braze announced the acquisition of OfferFit, which is expected to contribute approximately 2% to the company’s revenue growth for the fiscal year.
Following these developments, DA Davidson maintained a Buy rating on Braze, citing the company’s robust top-line results and profitability. Meanwhile, Raymond (NSE:RYMD) James and JPMorgan both adjusted their price targets for Braze, with Raymond James lowering it to $43 and JPMorgan to $45, though they maintained positive ratings. These adjustments reflect the strategic impact of the OfferFit acquisition and its effect on Braze’s financial guidance.
Braze’s fiscal year 2026 outlook remains unchanged, with anticipated revenue between $722 million and $726 million. The company continues to focus on innovation and expanding its customer base, with total customers reaching 2,342, including a 24% increase in large customers. Despite some headwinds, Braze’s management remains optimistic about future growth, emphasizing the strategic benefits of the OfferFit acquisition and ongoing investments in AI and first-party data activation.
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