On Thursday, Braze Inc (NASDAQ:BRZE) experienced a revision to its stock price target, which was lowered from $68.00 to $65.00 by TD (TSX:TD) Cowen, though the investment firm kept its Buy rating on the shares.
The adjustment followed Braze's fourth-quarter earnings report, which showcased a revenue growth of 33%, surpassing the Street's expectation of 27%. This performance represents a consistent pattern of exceeding quarterly expectations.
Despite the positive outcome of the recent quarter, TD Cowen noted that Braze's growth guidance for fiscal year 2025, which is set at 21-22%, fell slightly short of the Street's forecast of 23%. However, the firm believes that these projections align with what the buyside anticipated. The company's demand trends, particularly in the up-market segment, were highlighted as a key strength, benefiting from the replacement of legacy systems.
TD Cowen expressed confidence in the potential for Braze to outperform its conservative forecast for fiscal year 2025. The firm identified several factors that could serve as catalysts for upside performance throughout the year. This optimism is reflected in the firm's decision to maintain a Buy rating for Braze Inc, despite the modest reduction in the price target.
The revised price target of $65.00 is seen by TD Cowen as a conservative bar, suggesting that there is room for Braze's stock value to climb higher than anticipated.
The firm's commentary indicates a belief in the company's continued growth and the effectiveness of its strategies in capturing market share, particularly in the face of displacing older technologies in the industry.
Braze Inc's latest financial results and the subsequent price target update by TD Cowen highlight the company's solid performance and potential for future growth. The maintained Buy rating, despite a lower price target, points to a positive outlook for the company's stock in the eyes of the investment firm.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.