Analyst Ittai Kidron of Oppenheimer maintained a Buy rating on Backblaze (BLZE – Research Report), with a price target of $7.50.
Ittai Kidron’s Buy rating on Backblaze’s stock is primarily based on several encouraging factors. Firstly, Backblaze had a strong third quarter in 2023, exceeding anticipated consensus and subsequently raising the full-year revenue guidance for 2023. This implies a potential acceleration in revenue growth, with B2’s year-over-year revenue growth predicted to exceed 40% in the fourth quarter. The positive outlook reflects sustained B2 Cloud adoption, gains in the premium market, and a robust growth pipeline. Additionally, the company has managed to leverage recent price increases effectively, with minimal customer attrition, highlighting Backblaze’s appealing value proposition.
Secondly, Kidron is optimistic about Backblaze’s future, seeing potential for a continued acceleration in revenue growth into the fiscal year 2024. This is due to the roll-out of price increases across the customer base and the introduction of new product enhancements, such as improved upload performance and free egress, which are expected to drive adoption. Furthermore, Backblaze’s third quarter results were solid, with revenues and non-GAAP EPS surpassing consensus estimates. The company’s management has also been successful in guiding the company towards faster revenue growth in the fourth quarter following the recent price hikes. Kidron remains positive and believes the price increases and product enhancements can drive higher customer adoption and accelerate revenue growth.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $18.00 price target.
See today’s best-performing stocks on TipRanks >>
Based on the recent corporate insider activity of 203 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BLZE in relation to earlier this year.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Backblaze (BLZE) Company Description:
Backblaze Inc provides cloud storage services. The company offers services such as Backblaze B2 Cloud Storage which enables customers to store data, developers to build applications, and partners to expand their use cases. It is offered as a consumption-based Infrastructure-as-a-Service (IaaS) and serves use cases including backups, multi-cloud, application development, and ransomware protection and Backblaze Computer Backup automatically backs up data from laptops and desktops for businesses and individuals. Geographically, it derives a majority of revenue from the United States.
Read More on BLZE:
- Backblaze Announces Third Quarter 2023 Financial Results
- Backblaze announces new innovation on data upload technology
- Backblaze Improves Performance with Breakthrough Storage Cloud Innovation
- Backblaze, HYCU partner to protect workloads for hybrid cloud environments
- Backblaze and HYCU Team Up to Protect Critical Workloads for On-Prem and Hybrid Cloud Environments
