S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
On Friday, Raymond (NSE:RYMD) James analysts adjusted their outlook on Braze Inc (NASDAQ: NASDAQ:BRZE), reducing the price target to $43 from $48 while maintaining an Outperform rating. This change follows the company’s first-quarter results for fiscal year 2025, which surpassed expectations. The customer engagement platform, currently valued at $3.79 billion, has demonstrated robust revenue growth of 22.66% over the last twelve months.
The analysts noted that while the results were positive, the extent of the upside and guidance might present short-term challenges. They highlighted that the improvement in booking trends during the latter half of the fiscal year was anticipated, and smaller beats earlier in the year were expected. According to InvestingPro analysis, Braze maintains a strong financial position with more cash than debt on its balance sheet, though it’s currently trading at a high Price/Book multiple of 7.98x.
Despite the adjustments, Raymond James analysts acknowledged potential headwinds from OfferFit affecting margins more than anticipated. They believe that management’s decision to adjust forward guidance could better position the stock for future quarters. For deeper insights into Braze’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and additional ProTips in the detailed Pro Research Report.
Braze shares have experienced a recent pullback of approximately 9%, which the analysts view as a buying opportunity. The firm’s outlook remains optimistic, focusing on the potential for future growth, with analyst price targets ranging from $38 to $75 per share.
In other recent news, Braze Inc. reported impressive financial results for the first quarter of fiscal year 2026, surpassing analysts’ expectations with earnings per share of $0.07, compared to the forecasted $0.05. The company’s revenue reached $162.1 million, exceeding projections and marking a nearly 20% increase year-over-year. Braze also completed the acquisition of OfferFit, which is expected to contribute approximately 2% to revenue growth and aid in expanding deals with existing customers. Despite the acquisition leading to a temporary reduction in operating margins by about 300 basis points, the company raised its full-year revenue guidance. Analysts from DA Davidson maintained a Buy rating on Braze, citing strong earnings and strategic growth initiatives, while JPMorgan adjusted its price target from $47 to $45, maintaining an Overweight rating. The company continues to experience robust customer growth, with total customers reaching 2,342, including a 24% increase in large customers. With a focus on innovation and leveraging AI, Braze remains optimistic about its long-term objectives, despite global trade concerns not significantly impacting deal cycles.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.