Analyst Steve Enders from Citi reiterated a Buy rating on BlackLine (BL – Research Report) and decreased the price target to $70.00 from $73.00.
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Steve Enders’s rating is based on several key aspects of BlackLine’s performance and strategic positioning. Despite a weaker-than-expected Q4 performance, influenced by foreign exchange impacts and deal pushouts, Enders highlights the company’s strong renewal rates and a robust sales pipeline. The partnership with SAP is expected to enhance deal flow, and the recent appointment of a new Chief Revenue Officer from SAP is anticipated to bolster alignment and execution.
Looking forward, while there are concerns regarding the slow growth and future metrics, Enders views the current share price weakness as an attractive buying opportunity. The strategic shift to a volume-based pricing model and expected operational margin improvements provide additional confidence in BlackLine’s future growth potential. Consequently, the target price has been adjusted, reflecting a positive outlook despite current challenges.
According to TipRanks, Enders is a 3-star analyst with an average return of 1.3% and a 54.73% success rate. Enders covers the Technology sector, focusing on stocks such as BlackLine, Monday.com, and Intuit.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $80.00 price target.