Analyst Chris Quintero from Morgan Stanley maintained a Buy rating on BlackLine and keeping the price target at $68.00.
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Chris Quintero has given his Buy rating due to a combination of factors that highlight BlackLine’s promising trajectory. The company’s recent Investor Day revealed significant progress in strategic initiatives, which are expected to lead to growth and margin improvements not currently reflected in its valuation. The management’s efforts in optimizing their go-to-market strategy have resulted in larger deal sizes and a stronger sales pipeline, with a notable increase in new pricing model adoption, particularly from new clients.
Additionally, BlackLine’s enhanced partner strategy has led to a record number of partner-led deals and a stronger relationship with SAP, with a significant increase in SAP-related opportunities. The company’s focus on product innovation, evidenced by the growing adoption of the Studio360 platform and numerous new capabilities, is also driving larger deals and higher customer retention. These developments, alongside operational achievements like cloud migration, bolster confidence in BlackLine’s ability to accelerate its growth rate towards its medium-term targets.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $68.00 price target.