Robert Simmons, CFA, an analyst from D.A. Davidson, has initiated a new Buy rating on BlackLine (BL).
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Robert Simmons, CFA has given his Buy rating due to a combination of factors that highlight BlackLine’s promising financial trajectory. The company is expected to achieve accelerated revenue growth, increasing from 6% in the first quarter to 10% by the end of 2026, and potentially reaching 13% by the end of 2027. Additionally, BlackLine is projected to significantly expand its margins, with a 700 basis point increase in Non-GAAP operating margin anticipated through 2027. This growth is supported by the company’s re-architected platform, which enhances its competitive position and aligns its pricing model with the value delivered to customers.
BlackLine’s innovative Studio360 platform re-establishes it as a preferred vendor, particularly in integrating AI solutions into finance departments. The platform’s comprehensive integration and scalability make it appealing to customers, positioning BlackLine to effectively implement AI technologies. Furthermore, the transition to a usage-based pricing model aligns monetization with value, insulating the company from potential customer headcount fluctuations. With the stock trading below its peers and a target price of $65, Simmons sees significant upside potential, prompting the Buy rating.