Braze's Price Target Cut Amid Strong Financial Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 02 2024
0mins
Should l Buy BRZE?
Source: Business Insider
Braze Inc's stock fell 5.03% today, crossing below its 5-day SMA, as the Nasdaq-100 and S&P 500 both experienced declines of 1.63% and 1.04%, respectively.
Stifel analyst Parker Lane cut Braze's price target from $45 to $40 while maintaining a buy rating, reflecting a decline in investor sentiment despite the company's strong financial performance, which included a 25% year-over-year revenue increase and positive free cash flow of $17.8 million in Q3 2025. This cautious market attitude has contributed to the stock's decline, even as Braze's valuation remains attractive at 2.7 times sales, significantly lower than its five-year average.
The implications of this price target reduction suggest that while Braze has demonstrated solid growth and improved financial metrics, the market's cautious sentiment may continue to pressure the stock in the short term. Investors are encouraged to focus on the company's fundamentals and growth potential.
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Analyst Views on BRZE
Wall Street analysts forecast BRZE stock price to rise
16 Analyst Rating
16 Buy
0 Hold
0 Sell
Strong Buy
Current: 17.180
Low
38.00
Averages
45.00
High
53.00
Current: 17.180
Low
38.00
Averages
45.00
High
53.00
About BRZE
Braze, Inc. provides a customer engagement platform that enables brands to be engaging. The Company’s platform allows any marketer to collect and take action on any amount of data from any source, so they can engage with customers in real time, across channels from one platform. From cross-channel messaging and journey orchestration to artificial intelligence (Al)-powered experimentation and optimization, its platform enables companies to build and maintain engaging relationships with their customers. The Company’s platform produces data that informs decisions and actions across customer engagement strategies. It supports interactions across both in-product and out-of-product messaging channels. Braze Cloud Data Ingestion allows its customers to set up a direct connection between their data warehouses or platforms and Braze to automatically sync relevant data. The Company’s portfolio also includes OfferFit, an AI decisioning company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Braze Stock Price Target Cut Again, Analyst Sees Growth Potential
- Price Target Reduction: Stifel analyst Parker Lane cut Braze's price target from $45 to $40 while maintaining a buy rating, indicating recognition of the company's future growth opportunities.
- Investor Sentiment Decline: Braze's stock fell 0.7% in today's trading, recovering from an earlier decline of 5.2%, reflecting a cautious market attitude towards the tech stock.
- Improved Financial Performance: In Q3 2025, Braze reported a 25% year-over-year revenue increase with free cash flow of $17.8 million, a significant improvement compared to negative free cash flow of $14.2 million during the same period last year.
- Valuation Appeal: Braze shares are currently trading at 2.7 times sales, a discount to the five-year average price-to-sales ratio of 6.2, indicating attractive investment opportunities in the artificial intelligence sector.
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Stifel Analyst Lowers Braze Price Target to $40
- Price Target Cut: Stifel analyst Parker Lane has lowered the price target for Braze stock from $45 to $40 while maintaining a buy rating, indicating a decline in investor sentiment that has led to a drop in stock price despite the company's growth potential.
- Strong Financial Performance: In Q3 2025, Braze reported a 25% year-over-year revenue increase, achieving $17.8 million in free cash flow compared to a negative $14.2 million during the same period last year, highlighting significant financial improvement.
- Attractive Market Valuation: With shares trading at 2.7 times sales, a discount to the five-year average price-to-sales ratio of 6.2, Braze stock is positioned as an appealing option for investors looking for exposure to artificial intelligence.
- Investor Recommendations: Although Braze was not included in the Motley Fool Stock Advisor's top ten stock picks, analysts emphasize the company's strong fundamentals and growth opportunities, suggesting that investors focus on these aspects rather than solely on price targets.
See More
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- Financial Performance: For Q3 fiscal 2026, Braze reported revenue of $191 million, representing a 25.5% year-over-year growth and a 6% sequential increase, indicating strong customer demand despite a constrained enterprise software spending environment.
- Customer Growth Highlight: The company added 106 net new customers in the quarter and 317 over the past year, marking its strongest customer growth quarter in three years, which underscores sustained demand for its customer engagement tools.
- Market Positioning: While near-term valuation sentiment towards software remains cautious, Braze's consistent revenue growth and improving customer acquisition trends suggest that the company is well-positioned within the broader data-driven marketing landscape.
See More
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See More
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- Price Target Reduction: Stifel analyst Parker Lane cut Braze's price target from $45 to $40 while maintaining a buy rating, indicating recognition of the company's future growth opportunities.
- Investor Sentiment Decline: Braze's stock fell 0.7% in today's trading, recovering from an earlier decline of 5.2%, reflecting a cautious market attitude towards the tech stock.
- Improved Financial Performance: In Q3 2025, Braze reported a 25% year-over-year revenue increase with free cash flow of $17.8 million, a significant improvement compared to negative free cash flow of $14.2 million during the same period last year.
- Valuation Appeal: Braze shares are currently trading at 2.7 times sales, a discount to the five-year average price-to-sales ratio of 6.2, indicating attractive investment opportunities in the artificial intelligence sector.
See More
Stifel Analyst Lowers Braze Price Target to $40
- Price Target Cut: Stifel analyst Parker Lane has lowered the price target for Braze stock from $45 to $40 while maintaining a buy rating, indicating a decline in investor sentiment that has led to a drop in stock price despite the company's growth potential.
- Strong Financial Performance: In Q3 2025, Braze reported a 25% year-over-year revenue increase, achieving $17.8 million in free cash flow compared to a negative $14.2 million during the same period last year, highlighting significant financial improvement.
- Attractive Market Valuation: With shares trading at 2.7 times sales, a discount to the five-year average price-to-sales ratio of 6.2, Braze stock is positioned as an appealing option for investors looking for exposure to artificial intelligence.
- Investor Recommendations: Although Braze was not included in the Motley Fool Stock Advisor's top ten stock picks, analysts emphasize the company's strong fundamentals and growth opportunities, suggesting that investors focus on these aspects rather than solely on price targets.
See More
Piper Sandler Lowers Braze, Inc. Price Target to $30
- Price Target Adjustment: Piper Sandler has lowered Braze, Inc. (NASDAQ:BRZE) price target from $50 to $30 while maintaining an Overweight rating, reflecting a cautious stance on valuation expansion in the software sector influenced by narratives of 'seat-compression and vibe coding'.
- Financial Performance: For Q3 fiscal 2026, Braze reported revenue of $191 million, representing a 25.5% year-over-year growth and a 6% sequential increase, indicating strong customer demand despite a constrained enterprise software spending environment.
- Customer Growth Highlight: The company added 106 net new customers in the quarter and 317 over the past year, marking its strongest customer growth quarter in three years, which underscores sustained demand for its customer engagement tools.
- Market Positioning: While near-term valuation sentiment towards software remains cautious, Braze's consistent revenue growth and improving customer acquisition trends suggest that the company is well-positioned within the broader data-driven marketing landscape.
See More
Oversold Stocks in IT Sector Present Buying Opportunities
- Overview of Oversold Stocks: The information technology sector's oversold stocks present investors with opportunities to buy into undervalued companies, particularly when the Relative Strength Index (RSI) falls below 30, indicating potential overselling.
- Braze Inc Performance: Braze Inc (NASDAQ:BRZE) has seen its stock price drop approximately 39% over the past month, currently holding an RSI of 28; analyst Hannah Rudoff maintains an Overweight rating but lowers the price target from $50 to $30, reflecting cautious market sentiment regarding its future performance.
- Price Fluctuation Details: Despite a 2.9% increase in Braze Inc's stock price to close at $19.47 on Wednesday, its 52-week low stands at $17.62, indicating market concerns about the company's outlook.
- Market Analysis Tools: Utilizing data from Benzinga Pro, the RSI serves as a momentum indicator that aids traders in understanding short-term stock performance, especially in the IT sector, where identifying oversold stocks may offer potential buying opportunities.
See More
Software Sector Faces Worst Drawdown in a Decade
- Severe Market Drawdown: The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) has fallen for seven consecutive sessions, resulting in a 16% drop, marking the worst performance since the COVID panic in 2020, indicating immense pressure on the software sector.
- Widespread Negative Returns: Year to date, 100 out of 110 constituents in the software sector have posted negative returns, with over 20 stocks down more than 30%, reflecting growing concerns about the sustainability of software business models.
- Deteriorating Technical Indicators: A striking 97 of the IGV ETF's constituents are trading below their 200-day moving average, highlighting a broad breakdown in technical momentum, while the 14-day RSI has plummeted to 16, the lowest since September 2001, indicating extreme market pessimism.
- Pressure from Business Model Shifts: Macro strategists have noted that the rise of AI tools is replacing expensive SaaS platforms, leading to pricing pressures, slower renewals, and declining customer retention, prompting investors to rethink growth and value in the AI era.
See More
Three Companies Achieve Best Monthly Performance
- Outstanding Performance: Sandisk Corp. surged over 150% in January 2026, marking its best month since its IPO in February 2025, driven by quarterly earnings that exceeded Wall Street expectations and booming AI data center demand tightening storage supply.
- Rising Nuclear Demand: Cameco Corp. advanced 37%, supported by analyst upgrades to earnings forecasts and price targets, reflecting optimistic expectations for long-term nuclear demand amid rising uranium prices and renewed policy support.
- Defense Giant Breakthrough: Lockheed Martin Corp. jumped 30%, achieving its best monthly performance since its 1995 debut, as investors focused on upbeat 2026 financial guidance and a new missile contract with the U.S. Department of Defense despite narrowly missing quarterly earnings estimates.
- Software Sector Decline: The software sector faced historic declines in January, with five major companies logging their worst monthly performances, largely due to AI-driven demand reshaping and a reassessment of business models across the industry.
See More
