Street View: Braze set for share gain as customers shift to AI-driven marketing
09/06/2023 16:08
** Customer engagement software developer Braze BRZE.O
forecast a lower annual loss after hours on Thursday vs prior
estimate on strong subscription growth and renewals
** Multiple brokerages raised their price targets on the
BRZE stock
** Shares up as much as 26% at $42.84, at a near 9-month
high on Friday
"DIFFERENTIATED ASSET" POSITIONS THE FIRM WELL
** J.P.Morgan ("overweight", PT:$40) says Braze continues to
benefit from vendor consolidation, winning against both legacy
marketing clouds and point solutions
** BTIG LLC ("buy", PT:$43) adds that upgrades and wins with
key growth clients were key to Q1 earnings beat
** Canaccord Genuity ("buy", PT:$42) says co's
"differentiated offering", operating efficiency could improve
growth and qtrly profitability late FY2025
** Piper Sandler ("overweight", PT:$45) believes BRZE will
benefit from customers moving off legacy marketing clouds and
point solutions that are unable to leverage first-party data and
execute in real time
** Raymond James ("outperform", PT:$44) says macro driven
budget pressures and modernizing efforts (including AI) will
shift spending towards platforms like Braze
** Oppenheimer ("outperform", PT:$42) suggests co is a
"proven share-gainer" on its multi-year SaaS growth potential
** TD Cowen ("outperform", PT:$45) highlights new GenAI
innovation flowing into the platform will attract more end-users
and workloads to the platform
(Reporting by Juveria Tabassum in Bengaluru)
((Juveria.Tabassum@thomsonreuters.com;))