Blackbaud stock touches 52-week low at $63.6 amid market challenges

Published 13/03/2025, 18:16
Blackbaud stock touches 52-week low at $63.6 amid market challenges

Blackbaud Inc. (NASDAQ:BLKB), a leading cloud software company powering social good, has seen its stock price touch a 52-week low, dipping to $63.6. According to InvestingPro analysis, the stock appears undervalued at current levels, with analysts setting price targets ranging from $65 to $85. This latest price level reflects a challenging period for the company, which has experienced a 1-year change with a decrease of 12.32%. While the stock has faced headwinds, with a particularly sharp decline of 23.68% over the past six months, management has been actively buying back shares. Investors are closely monitoring Blackbaud’s performance as it navigates through the evolving market conditions that have impacted its stock valuation over the past year. For deeper insights into Blackbaud’s valuation and growth prospects, InvestingPro subscribers can access 10+ additional exclusive tips and comprehensive financial analysis. The company’s strategic initiatives and market position will be key factors in determining whether it can rebound from this low point and regain investor confidence. Despite recent challenges, analysts expect the company to return to profitability this year, supported by a solid gross profit margin of 55.32%.

In other recent news, Blackbaud reported its fourth-quarter 2024 earnings, surpassing earnings per share (EPS) expectations with a result of $1.08 compared to the forecasted $1.06. However, the company faced a revenue shortfall, reporting $302.2 million against the anticipated $305.28 million. For the full year, Blackbaud achieved revenue of $1.155 billion, reflecting a 5.2% organic growth rate. Analysts at Evercore ISI and Raymond (NSE:RYMD) James have provided differing views on Blackbaud’s stock, with Evercore ISI initiating an In Line rating with a price target of $80, and Raymond James maintaining an Outperform rating with a $95 target. Blackbaud’s financial guidance for 2025 projects revenue between $1.115 billion and $1.125 billion, falling short of Street consensus. The company plans to repurchase 3-5% of its outstanding shares in 2025, following a 10% buyback in 2024. Blackbaud is also focusing on AI-driven innovations, such as the Blackbaud CoPilot, which is expected to support long-term revenue growth. Despite these strategic moves, the company’s initial free cash flow guidance for fiscal year 2025 is significantly lower than expected, influenced by one-time factors like a $28 million lease termination and a $5 million investment in India.

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