Needham analyst Scott Berg maintained a Buy rating on Braze (BRZE – Research Report) today and set a price target of $70.00.
Scott Berg’s rating is based on a combination of positive sales performance and promising market demand for Braze’s offerings. The company’s report for the fourth quarter of fiscal year 2024 showed a noteworthy acceleration in the growth rate of committed remaining performance obligations (cRPO), coupled with the acquisition of their first customer with an eight-figure contract. Despite the challenging economic environment, Braze managed to deliver impressive sales and revenue figures, which were considered exceptional by Berg. The conservative guidance for fiscal year 2025, with its expected drop in subscription revenue growth, is seen as a cautious approach in light of an uncertain macroeconomic climate affecting marketing budgets.
Moreover, Scott Berg takes into account the broader industry perspective, which indicates a strong demand for Braze’s services. Braze’s decision to resume hiring sales representatives is viewed as a reflection of this positive demand within the industry. Additionally, the anticipation of Braze achieving positive operating income in the fourth quarter of fiscal year 2025 is seen as a potential incremental catalyst for the company’s financial performance. Taking these factors into account, Berg maintains a Buy rating for Braze, seeing the company’s prospects favorably despite the conservative fiscal projections.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a $65.00 price target.
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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.
