🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

BTIG remains Buy-rated on Braze Inc amid strong demand

EditorRachael Rajan
Published 09/30/2024, 07:36 PM
BRZE
-

On Monday, BTIG reiterated its Buy rating on Braze Inc (NASDAQ:BRZE), maintaining a $62.00 price target for the company's shares.

The endorsement follows the annual Braze Forge user conference, which included an Investor Day and showcased the company's strong market position.

"Based on our conversations with the attendees, there is a clear demand for the Braze platform and the advanced capabilities that continue to outpace the big stack competition - despite relentless marketing about AI and other big picture promises," said BTIG analysts.

Conversations with several large enterprise customers revealed interest in exploring significant expansions of Braze's services across various business units. These customers acted as advocates for the platform, indicating a solid user base. The event also highlighted a growing list of tech partners that are integrating with the Braze ecosystem, offering unique features that stand out from the competition.

Despite the absence of bullish financial guidance during the Investor Day, BTIG expressed increased confidence in Braze's long-term growth prospects. However, they noted that the short-term growth trajectory could be influenced by the current macroeconomic environment. The firm's stance suggests a positive outlook for Braze Inc, with the company's innovative platform and expanding partnerships reinforcing its market position.

In other recent news, Braze Inc. reported a 26% increase in its fiscal second quarter 2025 revenue, reaching $145.5 million, and added 61 new customers, bringing the total to 2,163. Revenue for the third quarter is projected to be between $147.5 million and $148.5 million, with full fiscal year 2025 revenue expected to be between $582.5 million and $585.5 million.

JPMorgan reaffirmed its Overweight rating on Braze, pointing out the company's innovation and approach to redefining the marketing technology stack. Goldman Sachs also reiterated its Buy rating, noting Braze's commitment to the Rule of 40 principle, which balances growth with profitability. TD Cowen, despite lowering its price target for Braze, maintained its Buy rating, highlighting Braze's strategies aimed at achieving a return to the Rule of 40. Piper Sandler kept its Overweight rating and Loop Capital maintained its Buy rating, citing potential growth in AI.

InvestingPro Insights

Building on BTIG's positive outlook for Braze Inc (NASDAQ:BRZE), recent InvestingPro data offers additional context to the company's financial position. Despite the absence of bullish financial guidance noted in the article, InvestingPro Tips reveal that 11 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in Braze's near-term performance.

The company's revenue growth remains strong, with InvestingPro data showing a 31.12% increase in the last twelve months as of Q2 2025, aligning with the article's mention of long-term growth prospects. However, investors should note that Braze is currently trading near its 52-week low, with a -25.82% price return over the past month, which may present a potential entry point for those bullish on the company's future.

Braze's financial health appears solid, as an InvestingPro Tip indicates that the company holds more cash than debt on its balance sheet. This financial stability could support the company's ability to invest in its platform and partnerships, as highlighted in the article.

For readers interested in a deeper analysis, InvestingPro offers 5 additional tips for Braze, providing a more comprehensive view of the company's financial landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.