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Baird sees upside for BlackLine shares, maintains $65 target

Published 2024-09-26, 02:44 p/m
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On Thursday, Baird reaffirmed its positive outlook on BlackLine (NASDAQ:BL), maintaining an Outperform rating and a price target of $65.00. The firm highlighted BlackLine as a bullish Fresh Pick, anticipating potential share price growth towards the end of the year. The optimism is partly based on the upcoming analyst day, which is expected to serve as a significant event for the company.

The analyst day could reveal new medium- to long-term financial goals that may include an acceleration in revenue growth and ongoing margin expansion. These expectations are supported by recent industry checks which suggest a slight improvement in spending on financial suites and internal advancements within BlackLine.

Baird's stance on BlackLine comes amid a cautious market sentiment, with the firm acknowledging that the company is not entirely "out of the woods." However, due to the current low expectations and valuation of the company's shares, Baird sees a path for upside potential.

The firm's reiteration of the Outperform rating and price target reflects a belief in the company's ability to overcome present challenges. BlackLine's analyst day is being closely watched as a potential turning point for the company's financial trajectory and stock performance.

In other recent news, BlackLine, Inc. reported a significant growth in its Q2 2024 earnings, with a revenue of $161 million and a non-GAAP net income of $43 million. The company's strategic product portfolio, particularly in consolidation and financial analytics, had a strong quarter. In addition, BlackLine appointed David Henshall to its Board of Directors, a move expected to strengthen the company's strategic direction and governance due to Henshall's extensive background in enterprise software and financial management.

In terms of investment activity, Soros Capital Management sold off its stakes in Microsoft (NASDAQ:MSFT) and Advanced Micro Devices (NASDAQ:AMD), while Jana Partners established a new position in BlackLine Systems, owning nearly a 2% stake in the company. The Saudi Public Investment Fund added call positions in PayPal (NASDAQ:PYPL), Microsoft, and Meta Platforms Inc (NASDAQ:META), increasing the value of its U.S. stock holdings to roughly $20.7 billion.

Looking ahead, BlackLine expects a total GAAP revenue for Q3 to be between $162 million and $164 million, indicating an 8% to 9% growth. These are the recent developments in the company's financial performance and strategic initiatives.

As always, this information is based on the analysis of independent sources and does not contain personal opinions or predictions.


InvestingPro Insights


As BlackLine (NASDAQ:BL) approaches its analyst day with Baird maintaining an Outperform rating, InvestingPro data underscores some financial metrics worth considering. The company's market capitalization stands at $3.15 billion, with a Price/Earnings (P/E) ratio of 25.66, indicating investor expectations of future earnings growth. Notably, BlackLine's revenue growth over the last twelve months as of Q2 2024 has been 11.94%, reflecting a consistent upward trajectory in its financial performance.

Two InvestingPro Tips that align with Baird's positive outlook include BlackLine's high shareholder yield and the expectation that net income will grow this year. With analysts predicting the company will be profitable this year, these tips further support the optimism surrounding BlackLine's financial outlook. For investors seeking a deeper analysis, InvestingPro offers additional tips on BlackLine's financial health and future prospects, which can be found at https://www.investing.com/pro/BL.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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