Braze (NASDAQ:BRZE) Price Target Cut to $34.00 by Analysts at JPMorgan Chase & Co.

Key Points

• JPMorgan cut Braze’s price target to $34 from $35 but maintained an “overweight” rating, implying roughly 40.6% upside from the reported $24.18 share price.
• Braze exceeded quarterly expectations, reporting $227.2 million in revenue, up 26.2% year over year, and $0.19 EPS versus the $0.16 consensus estimate. The company also raised fiscal 2027 guidance to $910 million-$913 million in revenue and $0.64-$0.65 EPS.
• Despite the strong results and broadly bullish analyst sentiment—with a consensus “Moderate Buy” rating and $38 price target—the stock fell sharply as investors were disappointed by the pace of projected third-quarter profit growth.

Braze (NASDAQ:BRZE - Get Free Report) had its target price dropped by stock analysts at JPMorgan Chase & Co. from $35.00 to $34.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price target indicates a potential upside of 40.58% from the company's current price.

Several other brokerages also recently weighed in on BRZE. Stifel Nicolaus set a $35.00 target price on shares of Braze in a research note on Wednesday. UBS Group boosted their price objective on shares of Braze from $28.00 to $32.00 and gave the stock a "buy" rating in a report on Wednesday. DA Davidson upped their price objective on shares of Braze from $33.00 to $40.00 and gave the company a "buy" rating in a research report on Wednesday, September 2nd. Raymond James Financial raised their target price on Braze from $27.00 to $33.00 and gave the company an "outperform" rating in a research note on Wednesday. Finally, BTIG Research reaffirmed a "buy" rating and set a $35.00 target price on shares of Braze in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Braze currently has an average rating of "Moderate Buy" and a consensus price target of $38.00.

Braze Price Performance

Braze stock traded down $6.12 during midday trading on Wednesday, hitting $24.18. 7,317,521 shares of the company were exchanged, compared to its average volume of 2,968,604. The company's fifty day moving average price is $27.57 and its 200-day moving average price is $23.54. The company has a market cap of $2.72 billion, a PE ratio of -21.54 and a beta of 0.88. Braze has a fifty-two week low of $15.26 and a fifty-two week high of $37.33.

Braze (NASDAQ:BRZE - Get Free Report) last issued its quarterly earnings data on Tuesday, September 8th. The company reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.03. The company had revenue of $227.23 million during the quarter, compared to the consensus estimate of $220.27 million. Braze had a negative net margin of 15.51% and a negative return on equity of 17.52%. Braze's revenue for the quarter was up 26.2% on a year-over-year basis. During the same quarter last year, the company earned $0.15 earnings per share. Braze has set its FY 2027 guidance at 0.640-0.650 EPS and its Q3 2027 guidance at 0.130-0.140 EPS. On average, analysts expect that Braze will post -0.78 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Astha Malik sold 33,656 shares of the business's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $27.65, for a total value of $930,588.40. Following the completion of the sale, the insider owned 278,138 shares of the company's stock, valued at approximately $7,690,515.70. The trade was a 10.79% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Jonathan Hyman sold 42,000 shares of the company's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $32.47, for a total transaction of $1,363,740.00. Following the completion of the sale, the chief technology officer owned 1,143,219 shares in the company, valued at approximately $37,120,320.93. This trade represents a 3.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 203,568 shares of company stock valued at $6,096,461 in the last ninety days. Corporate insiders own 12.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Braze by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,224 shares of the company's stock valued at $1,415,000 after acquiring an additional 1,700 shares during the period. Intech Investment Management LLC boosted its position in Braze by 18.8% during the 1st quarter. Intech Investment Management LLC now owns 40,281 shares of the company's stock valued at $1,453,000 after purchasing an additional 6,379 shares during the period. Prudential Financial Inc. bought a new position in Braze during the 2nd quarter worth $272,000. Russell Investments Group Ltd. grew its stake in Braze by 1,353.0% during the 2nd quarter. Russell Investments Group Ltd. now owns 9,619 shares of the company's stock worth $270,000 after buying an additional 8,957 shares during the last quarter. Finally, Amundi increased its position in Braze by 8.9% in the second quarter. Amundi now owns 32,581 shares of the company's stock worth $918,000 after buying an additional 2,657 shares during the period. 90.47% of the stock is owned by institutional investors and hedge funds.

Braze News Summary

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Braze reported second-quarter revenue of $227.2 million, up 26.2% year over year, and adjusted earnings of $0.19 per share, exceeding estimates of $220.3 million and $0.16, respectively. Management cited continued AI-product adoption, enterprise expansion, improving operating leverage and record second-quarter free cash flow. Braze Reports Strong Fiscal Second Quarter 2027 Results
• Positive Sentiment: The company raised fiscal 2027 guidance to $910 million-$913 million in revenue and $0.64-$0.65 in EPS, above consensus estimates of $898.4 million and $0.35. Analysts responded with higher price targets: Stephens raised its target to $34, Piper Sandler to $30, and BTIG Research and Citizens JMP maintained bullish ratings with $35 targets.
• Positive Sentiment: Some analysts view the selloff as a valuation opportunity, noting that Braze trades at a discount to similarly growing software companies while maintaining roughly 23%-24% projected revenue growth. Braze: Growth At A Very Reasonable Price
• Neutral Sentiment: Third-quarter revenue guidance of $229 million-$230 million and EPS guidance of $0.13-$0.14 were both above published consensus estimates. However, the outlook appears less compelling than investors had anticipated, particularly regarding the pace of profit growth.
• Negative Sentiment: The immediate catalyst for the decline was disappointment with the third-quarter profitability outlook. Investors looked past the earnings beat and raised full-year forecast because the guidance suggested moderating earnings momentum and failed to meet elevated expectations. Braze Stock Plummets After Disappointing Profit Outlook

About Braze

Braze, Inc is a publicly traded software company NASDAQ: BRZE that offers a customer engagement platform designed to help brands build personalized relationships with their users. Founded in 2011 as Appboy by Bill Magnuson, Jon Hyman and Mark Ghermezian, the company adopted the Braze name in 2017 to underscore its focus on fostering strong connections between businesses and consumers. Its cloud-based platform consolidates messaging channels including push notifications, in-app messages, email and SMS, enabling companies to deliver timely, context-driven communications at scale.

The core functionality of Braze's platform centers on data-driven segmentation, customer journey orchestration and real-time analytics.

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