BlackLine’s Hold Rating: Adjustments in Free Cash Flow Estimates Amid Capitalized Software Costs

William Blair analyst Jake Roberge has maintained their neutral stance on BL stock, giving a Hold rating on May 8.

Jake Roberge has given his Hold rating due to a combination of factors, primarily focusing on the adjustments made to BlackLine’s free cash flow estimates. The revision in the free cash flow margin projection from 24.5% to 23.7% for 2025 reflects an increase in capitalized software costs, which aligns with the company’s recent expenditure trends in this area.
Despite the solid results and improved execution noted in BlackLine’s recent performance, there are no indications of a weakening macroeconomic environment. This cautious approach suggests that while the company is performing well, the adjustments in financial estimates warrant a Hold rating, indicating that investors should maintain their current positions rather than buying or selling the stock.

In another report released on May 8, Truist Financial also reiterated a Hold rating on the stock with a $45.00 price target.