S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
Critical asset just had biggest fall on record (Ad)
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
In Senegal's capital, Nicaragua is a hot ticket among travel agents as migrants try to reach US
Critical asset just had biggest fall on record (Ad)
California authorizes expansion of Waymo's driverless car services to LA, SF peninsula
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
Critical asset just had biggest fall on record (Ad)
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
In Senegal's capital, Nicaragua is a hot ticket among travel agents as migrants try to reach US
Critical asset just had biggest fall on record (Ad)
California authorizes expansion of Waymo's driverless car services to LA, SF peninsula
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
Critical asset just had biggest fall on record (Ad)
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
In Senegal's capital, Nicaragua is a hot ticket among travel agents as migrants try to reach US
Critical asset just had biggest fall on record (Ad)
California authorizes expansion of Waymo's driverless car services to LA, SF peninsula
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
Critical asset just had biggest fall on record (Ad)
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices
Critical asset just had biggest fall on record (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
In Senegal's capital, Nicaragua is a hot ticket among travel agents as migrants try to reach US
Critical asset just had biggest fall on record (Ad)
California authorizes expansion of Waymo's driverless car services to LA, SF peninsula
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation

The rally in Braze, Inc. gains momentum: 30% upside potential

Braze Stock Price outlook

Key Points

  • Braze had a beat-and-raise quarter that has shares up 5% and is on track for another double-digit gain... at least. 
  • Analysts cheered the results and raise their targets to align with another significant rally. 
  • Institutions have been selling into the rally and may provide volatility for traders to take advantage of. 
  • 5 stocks we like better than Braze

Braze, Inc. NASDAQ: BRZE emerged as a solid play on business services, AI and cloud stocks earlier this year, and it is gaining momentum. The Q3 results were strong enough to spark a series of price target upgrades that have the stock up 5% in premarket trading and on track for another 30% gain in the coming months. Not only is the fundamental story sound, but the company has solid market support and has completed a technical reversal that could see this market double by the end of next year. 

Braze has a blowout quarter, guides higher 

Braze had a solid quarter, with revenue growing 33% YOY to $124 million. This is 590 basis points better than the Marketbeat.com consensus driven by strength in subscriptions and services. Subscriptions, the core of the business, are up 33%, with services up a more robust 36%. Revenue gains are due to new customers, upsells and renewals that point to sustained strength in 2024. New customers are up 17% YOY, and customers contributing more than $500K in ARR are up nearly 28%. Net retention, a penetration gauge, is up 118%, aiding a significant margin increase. 

Braze continues to post GAAP and adjusted losses, but revenue leverage and cost controls significantly improved operational quality. The gross margin improved by 300 basis points, adjusted by 170 and was compounded by an improvement in operating costs. The operating loss was halved, leaving adjusted earnings at -$0.05 or $0.08 ahead of the consensus. The better news is that operational quality will persist in Q4, and the guidance appears cautious. 

Braze execs issued favorable guidance that has analysts raising their estimates. Still, the $124 to $125 million in quarterly revenue assumes an end to sequential growth and a significant slowdown from the 30% pace set this year. Because the company displays strength in new customers and retention and has expanded its relationship with AWS to include listing on the AWS Marketplace, Q4 results will likely exceed guidance. Regarding profitability, the company reaffirmed its outlook, expecting quarterly profits to begin in fiscal 2025 (calendar 2024). 


Analysts cheer Braze results, lift targets to catalyze the market 

The analysts were on board with Braze before the release and are raising their targets now. The five tracked by Marketbeat in the first 18 hours after the release include five price target increases with an average target of $73. That’s $14 or 24% above the broad market consensus of $59, trending higher and aligning with the post-release pop in the price action. The consensus of 17 analysts is a Moderate Buy; their activity has Braze listed on Marketbeat’s Most Upgraded and Top Rated Stocks list. 

Institutional activity may cause some volatility in the Braze market. The institutions have been actively buying and selling the stock over the past 2 quarters, with the total activity ramping higher and selling greater than buying. The ramp and mix in activity suggest market rotation and profit-taking that may persist as shares move higher. The caveat is that institutional holders may cease selling with prices advancing, allowing the rally to continue. 

The technical outlook: Braze is blazing a trail to higher share prices

The technical action in Braze is a textbook example of sell-off, bottoming, reversal and continuation. The sell-off resulted in a Head & Shoulders Bottom confirmed as a full reversal a few weeks ago. Now, the market is advancing again after showing a strong Three White Soldiers Continuation Pattern to break above critical resistance. In this scenario, this market could rise by the magnitude of the pattern, which is $25 and 100% of the starting point. In this scenario, the market for Braze stock could easily advance to and surpass the current analysts’ high price target of $80. 

Braze Stock Chart

→ Critical asset just had biggest fall on record (From Stansberry Research) (Ad)

Should you invest $1,000 in Braze right now?

Before you consider Braze, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Braze wasn't on the list.

While Braze currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

7 Stocks to Buy And Hold Forever Cover

Click the link below and we'll send you MarketBeat's list of seven stocks and why their long-term outlooks are very promising.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Braze (BRZE)
2.8411 of 5 stars
$57.13+0.4%N/A-41.10Moderate Buy$63.65
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


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