Stifel maintained its Buy rating and $30 price target on Braze Inc (NASDAQ:BRZE) shares following the company’s latest quarterly results.
The customer engagement platform delivered its fourth consecutive quarter of organic acceleration and raised its full-year guidance. The company reported improvements in dollar-based net retention and net customer additions. Revenue reached $738 million with 24% growth, though the company remains unprofitable over the last twelve months with an EPS of -$1.22.
Braze announced a new business win with an AI lab for its core capabilities. The analyst noted the company is experiencing continued share gains in the customer engagement space and improvements in sales productivity and efficiency.
Stifel observed after-hours weakness in the shares, attributing it to investor concerns about professional services mix, modest gross margin headwinds, and commentary around capacity constraints delaying Decisioning Studio start dates.
The firm said the stock trades at approximately 2.0x enterprise value to revenue and 15.6x enterprise value to free cash flow based on after-hours pricing. The company generated $62 million in free cash flow over the last twelve months. Stifel maintained its view on the durability of recurring growth and potential of Decisioning Studio and Braze AI solutions.
In other recent news, Braze Inc. reported its fiscal first-quarter 2027 earnings, with non-GAAP earnings per share of $0.10, meeting consensus estimates. The company achieved revenue of $211 million, surpassing expectations by 2.83% and reflecting a 30% year-over-year growth. Despite these positive financial results, Braze’s non-GAAP operating margin fell short at 5.0%, compared to the 5.2% consensus. Analyst firms have responded with mixed actions.
