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On Tuesday, TD Cowen analysts reiterated their Buy rating on Braze Inc (NASDAQ: NASDAQ:BRZE) stock, maintaining a price target of $47.00. This aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $38 to $75, with 13 analysts recently revising their earnings estimates upward. The analysts anticipate modest upside for the company’s upcoming first-quarter earnings report scheduled for Thursday.
The analysts expressed optimism about Braze’s potential for growth, noting that the sales headcount data was constructive. Their optimism appears well-founded, given the company’s impressive revenue growth of 25.78% and strong gross profit margin of 69.13%. They also highlighted positive indicators from related companies KVYO and TWLO, although they observed that third-party messaging data appeared more subdued.
Braze’s recent acquisition of Offerfit is expected to contribute positively to the company’s top-line numbers. The analysts predict that this acquisition will allow Braze to enhance its offerings in advanced AI and machine learning services, particularly in A/B testing and campaign flows.
The analysts believe that investor expectations for Braze remain low, despite the company’s consistent performance amid challenging market conditions over the past year. They see the potential for Braze to capitalize on new growth opportunities through strategic upselling.
With Braze trading at approximately 4x enterprise value to projected 2026 sales, coupled with mid-teens organic growth and expanding margins, the analysts consider the company’s valuation to be attractive. According to InvestingPro analysis, Braze maintains strong financial health with more cash than debt and liquid assets exceeding short-term obligations. Discover more insights and 5 additional ProTips with an InvestingPro subscription, including detailed Fair Value analysis and comprehensive financial health scores.
In other recent news, Braze Inc has made significant strides in its business operations and received notable attention from analysts. The company recently completed the acquisition of OfferFit, an artificial intelligence decisioning company, enhancing its real-time customer engagement capabilities. This strategic move is expected to bolster Braze’s platform with advanced machine learning technology, aligning with its development of Project Catalyst. On the analyst front, Cantor Fitzgerald initiated coverage on Braze with an Overweight rating, setting a price target of $45, while highlighting the company’s strong data platform and enterprise-grade technology.
Additionally, Citi maintained a Buy rating with a $55 target, expressing cautious optimism about Braze’s fiscal first quarter due to positive partner feedback. Stifel adjusted its price target for Braze to $45 but maintained a Buy rating, noting the company’s market share gains and strategic positioning in the customer engagement market. Meanwhile, Goldman Sachs reiterated its Buy rating with a $50 target, emphasizing Braze’s resilience amid market volatility and its potential to capitalize on AI initiatives. These developments reflect Braze’s ongoing efforts to expand its product offerings and its strong positioning in the market.
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