Blackbaud (BLKB): Assessing Valuation After New AI Partnership With Anthropic and Launch of Agents for Good

Blackbaud (BLKB) has put AI at the center of its story lately, from unveiling the Claude for Nonprofits fundraising connector with Anthropic to debuting Agents for Good, its virtual AI teammates for social impact organizations.

See our latest analysis for Blackbaud.

All this AI momentum comes while Blackbaud’s share price sits at $61.74, with a modest positive 1 month share price return but a notably weaker year to date share price return, alongside only mid single digit multi year total shareholder returns. This suggests enthusiasm is building more slowly than the product newsflow.

If Blackbaud’s AI push has you thinking about what else is reshaping the tech landscape, this could be a good moment to explore other high growth tech and AI stocks that are gaining attention.

With revenue still growing, a sharp rebound in profitability, and the stock trading at a meaningful discount to analyst targets, is Blackbaud quietly undervalued at this point, or is it already fully pricing in its next leg of AI driven growth?

Most Popular Narrative Narrative: 17.1% Undervalued

With the most followed narrative putting fair value at $74.50 versus the $61.74 last close, the gap rests on detailed growth and margin assumptions.

The shift toward cloud based SaaS subscription models and improvements in operational efficiency including automation and AI driven internal initiatives are lowering costs and improving gross and net margins, providing significant leverage to long term earnings growth.

Read the complete narrative.

Curious how modest top line expansion can still justify a richer future earnings multiple and rising margins, all at once, in this narrative? The full breakdown reveals the profit trajectory and valuation bridge that make this pricing case hang together.

Result: Fair Value of $74.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intensifying competition and slower tech spending from budget constrained nonprofits could challenge Blackbaud’s pricing power and pressure its long term growth assumptions.

Find out about the key risks to this Blackbaud narrative.

Build Your Own Blackbaud Narrative

If you see the story differently or simply want to dig into the numbers yourself, you can build a fresh view in just minutes: Do it your way.

A great starting point for your Blackbaud research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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