tiprankstipranks

Braze’s Strong Performance and Strategic Moves Justify Buy Rating and Raised Price Target

Derrick Wood, an analyst from TD Cowen, maintained the Buy rating on Braze (BRZEResearch Report). The associated price target is $47.00.

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.

Disclaimer & DisclosureReport an Issue