William Blair analyst Jake Roberge has maintained their neutral stance on BL stock, giving a Hold rating today.
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Jake Roberge has given his Hold rating due to a combination of factors that reflect both the challenges and opportunities facing BlackLine. The company experienced some delays in deal closures during the quarter, primarily due to large customers taking longer to decide on transitioning to the new Studio360 platform and pricing model. This led to smaller-than-expected seat expansions and some variability in near-term results.
Despite these challenges, BlackLine has shown positive business momentum, with a growing pipeline and increased gross bookings and win rates. The company has also seen a significant increase in average deal sizes and new customer bookings over the past year. However, the net revenue retention rate slightly decreased, influenced by foreign exchange impacts and churn among lower-end customers. While these factors contribute to a cautious outlook, the company is optimistic about achieving its long-term operating model by 2027, leading to a Hold rating from Roberge.
In another report released today, Robert W. Baird also downgraded the stock to a Hold with a $55.00 price target.
Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is neutral on the stock.