Stifel reiterates Buy rating on Braze stock ahead of Forge event

Investing.com - Stifel maintained its Buy rating and $40.00 price target on Braze Inc (NASDAQ:BRZE), currently trading at $31.14 with a market capitalization of $3.46 billion, ahead of the company’s annual Forge customer event.

The research firm noted that Braze recently delivered its largest top-line beat on an absolute basis since becoming a public company, with shares trading 12.6% higher following the earnings announcement, outperforming the IGV index’s 5.5% gain during the same period. InvestingPro data shows impressive revenue growth of 22.16% over the last twelve months, with 16 analysts revising their earnings estimates upward.

Despite this recent stock price appreciation, Stifel believes Braze remains undervalued, citing the company is "only scratching the surface of the emerging AI-enabled customer engagement opportunity." This view aligns with the broader analyst consensus, as tracked by InvestingPro, with price targets ranging from $38 to $68.

Stifel identified solid runway for vendor displacement and volume improvements as key growth drivers for Braze going forward.

While Braze is not hosting a formal analyst day program during the Forge event, the company plans to hold a reception for analysts and investors during the gathering.

In other recent news, Braze Inc reported impressive second-quarter results, with revenue surpassing expectations by 5% and achieving a 24% year-over-year growth rate. The company’s operating margin also exceeded estimates by approximately 300 basis points. Following these results, several analyst firms have adjusted their price targets and ratings for Braze. Goldman Sachs maintained a Buy rating with a $52.00 price target, while TD Cowen increased its target to $40.00, citing the biggest earnings beat in six quarters. Oppenheimer reiterated an Outperform rating with a $38.00 price target, highlighting the company’s strong performance. UBS adjusted its price target to $43.00, emphasizing Braze’s ability to sustain organic revenue growth in the 20% range. Mizuho raised its price target to $45.00, noting the company’s broad-based demand strength and better-than-expected results. These developments reflect a positive outlook from various analysts on Braze’s financial health and growth prospects.

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