Analyst Daniel Jester from BMO Capital maintained a Hold rating on BlackLine and keeping the price target at $63.00.
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Daniel Jester has given his Hold rating due to a combination of factors influencing BlackLine’s current market position and future prospects. The company is in the midst of executing a multi-year plan aimed at reaccelerating its business, with a focus on product innovation, sales strategy refinement, and providing more clarity on its financial trajectory. While there have been some initial positive developments, such as stabilization in business operations and an improved sales pipeline, Jester remains cautious and is waiting to see how the company performs in the crucial fourth quarter before making any changes to estimates or target price.
Jester acknowledges the company’s efforts to achieve “Rule of 40” metrics by fiscal year 2028, which will require strong execution despite recent growth stabilization. The guidance for this year suggests a performance similar to previous years, but there is an expectation for margin improvements by year-end. Looking forward, management’s framework for fiscal year 2026 aligns with Jester’s model, anticipating modest growth and margin expansion. Additionally, the introduction of new AI tools and the progress of Studio360 are seen as positive steps, but the overall market conditions remain mixed, and Jester is looking for near-term catalysts before considering a more optimistic outlook on the stock.
According to TipRanks, Jester is a 4-star analyst with an average return of 6.3% and a 56.99% success rate. Jester covers the Technology sector, focusing on stocks such as Intuit, BlackLine, and Dayforce Inc.