Update shared on19 Sep 2025
Fair value Increased 3.18%Braze’s consensus price target has increased to $45.11 on the back of accelerating revenue and cRPO growth, improved margins, robust guidance, and management’s positive outlook—despite sector valuation concerns—reflecting analysts’ greater confidence in the company’s execution and prospects.
Analyst Commentary
- Bullish analysts cite Braze's Q2 earnings beat, with revenue and cRPO growth accelerating and significant margin expansion, as evidence of strong execution and improved outlook.
- Improved operating efficiency, broad-based demand strength, and lower-than-expected down-sell contributed to operating margins and financial results exceeding expectations.
- Multiple firms note meaningful increases to full-year top-line and bottom-line guidance, signaling management confidence in sustained growth and differentiation in the customer engagement sector, particularly with AI relevance.
- Some bearish analysts lowered targets due to extended sector valuation concerns, lower group multiples, and lingering uncertainties around artificial intelligence impact, despite solid end demand and limited downside risk.
- Net new customer additions and incremental EBIT margin improvement are seen as positives for Braze's medium-term outlook, supporting investor comfort despite recent volatility in software valuations.
What's in the News
- Braze issued guidance for fiscal Q3, expecting revenue of $183.5 million to $184.5 million.
- Full-year fiscal 2026 revenue updated to $717.0 million to $720.0 million.
Valuation Changes
Summary of Valuation Changes for Braze
- The Consensus Analyst Price Target has risen slightly from $43.72 to $45.11.
- The Future P/E for Braze has significantly risen from 50.38x to 59.14x.
- The Net Profit Margin for Braze has fallen from 13.09% to 12.43%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.