Piper Sandler has adjusted its outlook on Braze (BRZE, Financial), reducing the price target from $48 to $38, while maintaining an Overweight rating for the stock. Analyst Brent Bracelin explained that the revision is part of a broader assessment across the cloud applications and analytics sector. This sector is currently experiencing growth obstacles due to various factors including tariff influences, evolving policies, and challenges associated with the adoption of artificial intelligence technologies.
The analyst observed that the software industry has been struggling with slowing growth, marking a downward trend for the fourth consecutive year. This sluggish growth is contributing to waning investor confidence, as evidenced by valuation multiples plummeting to their lowest in seven years. Although tariffs have a minimal direct impact on software models, the broader implications of these market challenges are leaving a significant mark on investor sentiment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Braze Inc (BRZE, Financial) is $53.26 with a high estimate of $75.00 and a low estimate of $40.00. The average target implies an upside of 90.70% from the current price of $27.93. More detailed estimate data can be found on the Braze Inc (BRZE) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Braze Inc's (BRZE, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Braze Inc (BRZE, Financial) in one year is $63.39, suggesting a upside of 126.96% from the current price of $27.93. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Braze Inc (BRZE) Summary page.
