Bank of America Securities analyst Koji Ikeda reiterated a Buy rating on BlackLine (BL – Research Report) today and set a price target of $73.00.
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Koji Ikeda’s rating is based on several key factors despite BlackLine’s mixed fourth-quarter results. The company’s revenue exceeded expectations, although its non-GAAP operating margin fell slightly short. Additionally, while the 2025 guidance was below forecasts, external factors such as deal scrutiny and foreign exchange impacts were considered. The constant currency growth projection is only marginally below market expectations, suggesting potential for improvement.
Moreover, the improvement in mid-market renewals, with a significant increase in renewal rates, indicates strong customer retention and reinforces BlackLine’s critical role in its market. Despite the challenges, Ikeda sees weaknesses in share prices as opportunities for investment, supported by the company’s leadership in accounting automation and positive adoption of new platform features. The revised price objective suggests a 15% upside, reflecting confidence in BlackLine’s long-term prospects.
Ikeda covers the Technology sector, focusing on stocks such as BlackLine, Datadog, and Elastic. According to TipRanks, Ikeda has an average return of 16.9% and a 61.10% success rate on recommended stocks.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $80.00 price target.