Braze (NASDAQ:BRZE) Earns “Buy” Rating from DA Davidson

Braze (NASDAQ:BRZE)‘s stock had its “buy” rating reiterated by equities research analysts at DA Davidson in a report issued on Wednesday, Benzinga reports. They currently have a $40.00 price objective on the stock. DA Davidson’s target price points to a potential upside of 67.11% from the stock’s current price.

BRZE has been the topic of a number of other research reports. Stifel Nicolaus set a $35.00 target price on Braze in a research report on Wednesday. JPMorgan Chase & Co. reduced their target price on shares of Braze from $35.00 to $34.00 and set an “overweight” rating for the company in a research report on Wednesday. The Goldman Sachs Group set a $34.00 price target on shares of Braze and gave the company a “buy” rating in a research report on Wednesday, June 24th. UBS Group increased their price target on shares of Braze from $28.00 to $32.00 and gave the company a “buy” rating in a research note on Wednesday. Finally, TD Cowen upped their price objective on Braze from $30.00 to $36.00 and gave the company a “buy” rating in a report on Thursday, August 27th. One analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $38.00.

Braze Trading Down 21.0%

Shares of NASDAQ:BRZE traded down $6.37 on Wednesday, hitting $23.94. 8,066,460 shares of the company were exchanged, compared to its average volume of 2,971,932. The firm has a market capitalization of $2.70 billion, a P/E ratio of -21.44 and a beta of 0.88. Braze has a 1-year low of $15.26 and a 1-year high of $37.33. The stock’s 50 day moving average price is $27.57 and its 200 day moving average price is $23.54.

Braze (NASDAQ:BRZE) last announced its quarterly earnings data on Tuesday, September 8th. The company reported $0.19 earnings per share for the quarter, beating analysts’ consensus estimates of $0.16 by $0.03. Braze had a negative return on equity of 17.52% and a negative net margin of 15.51%.The business had revenue of $227.23 million for the quarter, compared to analyst estimates of $220.27 million. During the same period in the prior year, the company earned $0.15 earnings per share. The company’s revenue was up 26.2% on a year-over-year basis. Braze has set its FY 2027 guidance at 0.640-0.650 EPS and its Q3 2027 guidance at 0.130-0.140 EPS. On average, equities analysts predict that Braze will post -0.78 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CRO Edward M. Mcdonnell sold 29,732 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $31.38, for a total value of $932,990.16. Following the completion of the transaction, the executive owned 409,630 shares of the company’s stock, valued at approximately $12,854,189.40. This trade represents a 6.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Astha Malik sold 33,656 shares of the company’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $27.65, for a total transaction of $930,588.40. Following the sale, the insider directly owned 278,138 shares in the company, valued at approximately $7,690,515.70. The trade was a 10.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 203,568 shares of company stock worth $6,096,461 over the last ninety days. Corporate insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Braze

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Fifth Third Bancorp acquired a new stake in Braze during the first quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd grew its position in shares of Braze by 3,650.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 825 shares of the company’s stock valued at $28,000 after buying an additional 803 shares during the last quarter. Harbor Investment Advisory LLC acquired a new stake in Braze during the 2nd quarter worth $36,000. Osaic Holdings Inc. boosted its stake in Braze by 821.1% in the second quarter. Osaic Holdings Inc. now owns 1,575 shares of the company’s stock valued at $44,000 after acquiring an additional 1,404 shares in the last quarter. Finally, Quarry LP purchased a new position in shares of Braze during the third quarter worth about $46,000. Hedge funds and other institutional investors own 90.47% of the company’s stock.

Key Braze News

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Braze reported fiscal second-quarter EPS of $0.19, above the $0.16 analyst consensus, while revenue of $227.23 million exceeded expectations of $220.27 million. Revenue increased 26.2% year over year. Braze Reports Strong Fiscal Second Quarter 2027 Results
• Positive Sentiment: The company raised fiscal 2027 guidance to $910 million-$913 million in revenue and $0.64-$0.65 in EPS, above consensus estimates of $898.4 million and $0.35, respectively. Management cited continued AI product adoption, enterprise expansion, improving operating leverage and record second-quarter free cash flow.
• Positive Sentiment: Several analysts remain bullish: Stephens raised its price target to $34, Piper Sandler increased its target to $30, and Citizens JMP and BTIG Research maintained positive ratings with targets of $35. JPMorgan retained an overweight rating despite trimming its target to $34. These targets imply substantial potential upside from recent trading levels.
• Neutral Sentiment: Analyst commentary described Braze as a relatively attractively valued growth software company, with forward enterprise-value-to-revenue multiples below those of comparable SaaS businesses. However, the investment case remains dependent on sustaining high growth while improving profitability.
• Negative Sentiment: The immediate selloff reflects concerns about third-quarter profit growth and the company’s outlook relative to elevated investor expectations. Although Braze’s third-quarter EPS guidance of $0.13-$0.14 and revenue guidance of $229 million-$230 million are above consensus, investors viewed the profit trajectory as insufficiently strong. Braze Stock Plummets After Disappointing Profit Outlook

Braze Company Profile

Braze, Inc is a publicly traded software company (NASDAQ: BRZE) that offers a customer engagement platform designed to help brands build personalized relationships with their users. Founded in 2011 as Appboy by Bill Magnuson, Jon Hyman and Mark Ghermezian, the company adopted the Braze name in 2017 to underscore its focus on fostering strong connections between businesses and consumers. Its cloud-based platform consolidates messaging channels including push notifications, in-app messages, email and SMS, enabling companies to deliver timely, context-driven communications at scale.

The core functionality of Braze’s platform centers on data-driven segmentation, customer journey orchestration and real-time analytics.