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On Thursday, Stifel analysts raised the price target for Braze Inc (NASDAQ:BRZE) shares to $50 from $48 while maintaining a Buy rating. The adjustment follows Braze’s stock trading approximately 10% higher on Thursday after the company reported fourth-quarter earnings that exceeded expectations and provided an initial forecast for fiscal year 2026. The new outlook surpassed Wall Street’s revenue projections and significantly outperformed on earnings. With analyst targets ranging from $39 to $75 and a strong Buy consensus rating, Braze has caught Wall Street’s attention. InvestingPro data shows 16 analysts have recently revised their earnings estimates upward for the upcoming period.
According to Stifel, the positive guidance from Braze’s management is attributed to robust new business momentum. The management has decided to uphold its current guidance philosophy, despite broader economic concerns. They emphasized that only one-fifth of their customer base is in retail and consumer goods, sectors often influenced by macroeconomic conditions. The company highlighted the less macro-sensitive nature of replacing legacy vendors as a factor in their favorable projections. Supporting this confidence, InvestingPro analysis reveals strong fundamentals with a current ratio of 1.99 and impressive revenue growth of 28.3% over the last twelve months.
Braze’s recent acquisition of AI-decisioning company OfferFit for $325 million was also noted by Stifel as a strategic move that could expedite Braze’s product development, particularly concerning Agentic AI and Project Catalyst. The acquisition is seen as a catalyst that could enhance Braze’s offerings and competitive edge in the market.
The company’s strong performance in the fourth quarter and the acquisition of OfferFit have contributed to Stifel’s optimism about Braze’s future. With the raised price target and the reaffirmed Buy rating, Stifel signals confidence in Braze’s growth trajectory and its ability to navigate the current market environment.
In other recent news, Braze Inc. reported strong fourth-quarter results for fiscal year 2025, surpassing analyst expectations with a non-GAAP earnings per share of $0.12, compared to a forecasted $0.05 loss. The company’s revenue for the quarter reached $160.4 million, exceeding the expected $155.7 million and representing a 22% year-over-year increase. Subscription revenue contributed significantly, amounting to $153.9 million, also up 22% from the previous year. Analysts from Citizens JMP maintained a Market Outperform rating with a $68 price target, citing the impressive quarterly results.
In addition to its financial performance, Braze announced the acquisition of OfferFit for $325 million, a strategic move anticipated to enhance the company’s growth by about 2% and accelerate its AI capabilities. Raymond (NSE:RYMD) James analysts highlighted this acquisition as a positive development, raising Braze’s stock target to $48. Furthermore, Braze’s guidance for fiscal year 2026 projects a non-GAAP EPS of $0.31 to $0.35 on revenue between $686 million and $691 million, indicating a 16% growth year-over-year. This guidance does not yet include potential impacts from the OfferFit acquisition, expected to close in the second quarter of fiscal year 2026.
Braze’s growth profile is expected to reach 20%, with potential to exceed this mark through mergers and acquisitions. The company’s strong performance and strategic acquisitions underscore its commitment to innovation and market expansion, as noted by analysts and reflected in its optimistic forward-looking guidance.
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