B.Riley Financial analyst Zach Cummins has reiterated their bullish stance on BLZE stock, giving a Buy rating today.
Zach Cummins has given Backblaze (BLZE) a Buy rating due to a combination of factors.
Firstly, the company posted strong 3Q23 results, with revenues slightly surpassing both Cummins’ model and consensus, driven largely by a 31% year-over-year increase from B2 Cloud Storage. Backblaze also demonstrated operational efficiency with adjusted EBITDA surpassing expectations due to cost-saving measures and minor restructuring in the first half of the year.
In addition, the company implemented price increases at the beginning of 4Q23 for B2 Cloud Storage and Computer Backup. This, along with improved customer retention and solid sales, resulted in positive 4Q23 guidance with accelerating revenue growth and a turn to positive adjusted EBITDA for the first time as a public company. Unofficial statements from management point towards strengthening revenue growth in FY24, positive EBITDA for the full year, and a significant reduction in cash burn. This led Cummins to increase his FY23 and FY24 estimates, and he has introduced FY25 estimates that assume continued growth in revenue and adjusted EBITDA margin.
According to TipRanks, Cummins is a 5-star analyst with an average return of 15.4% and a 47.09% success rate. Cummins covers the Technology sector, focusing on stocks such as DHI Group, Rekor Systems, and Backblaze.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $18.00 price target.
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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
