On Friday, TD (TSX:TD) Cowen adjusted its outlook on Braze Inc (NASDAQ:BRZE), lowering the price target to $52 from the previous $65, while retaining a Buy rating on the stock. The revision comes ahead of the company's first-quarter earnings report scheduled for June 6, 2024.
The firm anticipates that Braze will slightly outperform its first-quarter guidance and does not foresee significant alterations to its fiscal year 2025 guidance. Despite a challenging macroeconomic climate, Braze has consistently delivered strong results. The company's success is attributed to its ability to replace legacy systems and its strategy of vendor consolidation.
However, data pertaining to third-party email and SMS services indicates a potential slowdown from the performance levels observed in the fourth quarter. Despite this, TD Cowen remains positive on the long-term growth prospects for Braze.
The analyst from TD Cowen expressed continued confidence in the company's growth trajectory. "BRZE has been executing well against a mixed macro environment, and we expect more of the same, driven by legacy displacements & vendor consolidation," the analyst said.
Braze Inc, which specializes in customer engagement software, has managed to navigate through the fluctuating market conditions, and the analyst's maintained Buy rating suggests a belief in the company's ability to sustain its growth momentum over the long term. The new stock price target of $52 reflects a more conservative valuation while still implying a positive outlook.
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