Investing.com - Raymond James raised its price target on Braze Inc (NASDAQ:BRZE) to $27.00 from $25.00 while maintaining an Outperform rating on the customer engagement platform provider.
The firm cited an impressive fourth quarter beat and raised guidance, with 50% growth in fourth quarter bookings driving broad-based acceleration across key performance indicators. Management referenced strength with enterprise customers.
Raymond James believes an improving customer mix and broadening platform positions the company to continue gaining share with leading brands. The firm noted the 20%+ growth guide for fiscal year 2027 was well above whisper numbers and a notable improvement from the 16% initial growth outlook for fiscal year 2026.
The analyst stated, "We reiterate our Outperform rating on BRZE following an impressive F4Q beat and raise, with a remarkable 50% growth in F4Q bookings driving broad-based acceleration across KPIs."
Raymond James said it doesn't believe investors are appropriately valuing the company's growth prospects, noting shares were trading at just 2.5 times its fiscal year 2027 sales estimate after hours. The stock jumped to $21.20 following the results, though it remains down 54% over the past year. According to InvestingPro analysis, BRZE appears undervalued with a Fair Value of $24.09, placing it among opportunities on the Most Undervalued list.
In other recent news, Braze Inc has been the subject of several analyst reports following its fiscal year 2026 results. The company reported accelerating organic revenue growth for the third consecutive quarter, reaching approximately 24% year-over-year. Additionally, Braze provided its initial fiscal 2027 revenue guidance, indicating a 20% year-over-year growth, which surpassed some analysts' expectations. DA Davidson responded to these strong results by raising its price target to $33 from $30, while maintaining a Buy rating. Cantor Fitzgerald also reiterated its Overweight rating with a $38 price target, highlighting the company's accelerating growth metrics. However, other firms like Piper Sandler, UBS, and Oppenheimer adjusted their price targets downward due to factors like software de-rating and valuation concerns, though they maintained positive ratings on the stock. Piper Sandler lowered its target to $27, UBS to $28, and Oppenheimer to $30. Despite these adjustments, the consensus remains favorable towards Braze's future growth potential.