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On Friday, Stephens analysts adjusted their outlook on Braze Inc (NASDAQ: NASDAQ:BRZE) by reducing the price target to $41 from the previous $51, while maintaining an Overweight rating. The decision reflects the company’s sequential deceleration in subscription revenue and lower sequential net revenue retention (NRR). According to InvestingPro data, Braze maintains a healthy balance sheet with a current ratio of 1.92 and more cash than debt, despite posting losses in the last twelve months.
Despite these challenges, the analysts noted Braze’s growth resilience, highlighted by a projected 19% increase in the 2026 guide. This growth is seen as remarkable given the market’s concerns over variability in marketing spending. The company has demonstrated strong execution with revenue growth of 22.66% and an impressive gross margin of 69.44%. InvestingPro analysis reveals 6 additional key insights about Braze’s financial health and growth prospects.
The revised price target is based on a 5.1x enterprise value to fiscal year 2 revenue, representing a 23% discount to the 6.6x post-COVID average. The analysts continue to see more pros than cons for Braze in the first quarter, justifying the maintained Overweight rating.
Braze, a customer engagement platform, has been navigating a challenging market environment, which has impacted its financial metrics. The company’s ability to sustain growth amid these conditions remains a focal point for investors.
In other recent news, Braze Inc reported fiscal first-quarter results that exceeded consensus estimates, with a 20% year-over-year revenue increase. Despite this strong performance, Oppenheimer adjusted its price target for Braze to $44 due to concerns about revenue quality, while maintaining an Outperform rating. Needham analysts reiterated a Buy rating and kept a $50 price target, highlighting a 24.3% year-over-year increase in committed recurring purchase orders. Raymond (NSE:RYMD) James also maintained an Outperform rating but lowered the price target to $43, citing potential short-term challenges despite positive results. DA Davidson maintained a Buy rating with a $40 price target, emphasizing better-than-expected profitability and the strategic acquisition of OfferFit. JPMorgan reduced its price target to $45, noting the acquisition’s impact on financial guidance, but maintained an Overweight rating. Overall, Braze’s recent acquisition and strong revenue growth have drawn positive attention from analysts, who anticipate future growth despite some short-term challenges.
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