Derrick Wood, an analyst from TD Cowen, maintained the Buy rating on Braze (BRZE – Research Report). The associated price target is $47.00.
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Derrick Wood has given his Buy rating due to a combination of factors that highlight Braze’s strong performance and strategic initiatives. The company reported a solid fourth quarter with a revenue growth of 22.5%, which slightly exceeded expectations compared to the previous quarter. This growth was supported by diverse strength across various geographies and verticals, alongside a notable increase in new customer acquisition, indicating a positive trend in customer engagement and retention.
Additionally, the acquisition of OfferFit is seen as a strategic move to enhance Braze’s AI capabilities, which aligns with their long-term vision for agentic AI. This acquisition is expected to contribute to growth and improve operational efficiency through advanced AI-driven solutions. Despite some macroeconomic uncertainties, Braze’s management has provided an optimistic outlook with in-line revenue guidance and an operational margin forecast that exceeds market expectations. These factors, combined with the company’s solid positioning for long-term growth, underpin Derrick Wood’s decision to maintain a Buy rating and raise the price target to $47.
In another report released on March 26, Canaccord Genuity also maintained a Buy rating on the stock with a $45.00 price target.