Wells Fargo analyst Michael Berg maintained a Buy rating on Braze (BRZE – Research Report) today and set a price target of $65.00.
Michael Berg has given his Buy rating due to a combination of factors including Braze’s current market positioning and its growth potential. Berg highlights that despite a downturn in the stock’s year-to-date performance, the present situation represents an appealing entry point for investors. Braze operates in a substantial market with over $60 billion in total addressable market (TAM) and is on the cusp of profitability. The company’s strong differentiation and the significant opportunity for market share capture, given the consolidation potential in the marketing technology (MarTech) sector, underpin Berg’s positive outlook on the stock.
Furthermore, Berg’s conviction is reinforced by Braze’s consistent growth profile and the stabilization of key financial metrics. Even amidst a challenging macroeconomic environment, the company has continued to achieve over 30% organic growth. While there have been concerns regarding margins, Berg believes these are overstated as the company has shown an improving margin profile and is committed to achieving long-term profitability. Additionally, Braze’s technologically advanced platform is expected to benefit from advancements in artificial intelligence, further solidifying its position as a best-of-breed solution in customer engagement. Despite the competitive landscape and macroeconomic uncertainties, Berg maintains a positive stance on the stock’s valuation relative to its growth peers.
According to TipRanks, Berg is an analyst with an average return of -9.3% and a 18.75% success rate. Berg covers the Technology sector, focusing on stocks such as Braze, CSG Systems International, and Smartsheet.
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Braze (BRZE) Company Description:
Braze Inc is a customer engagement platform that powers customer-centric interactions between consumers and brands. The company provides solutions for Retail & E-commerce, Media & Entertainment, Financial Services, and Travel & Hospitality related industries.
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