Blackbaud (BLKB): Assessing Valuation Following Major UK Product Upgrades and Positive Donor Trends

Blackbaud (BLKB) just rolled out a significant update for its UK donation and donor management tools, unveiling new features and integrations designed to boost supporter engagement and streamline compliance for nonprofit customers.

See our latest analysis for Blackbaud.

These big product updates come just weeks after Blackbaud’s Institute highlighted impressive donor retention trends from its GivingTuesday partnership report, emphasizing how AI-fueled engagement is shaping the future of fundraising. Despite these advancements, the share price has drifted lower since January, closing recently at $65.18. The 1-year total shareholder return sits at -23.8%. Momentum has faded in 2024, but the company’s three- and five-year total returns of 20.8% and 32.1% still signal long-term value creation as innovation accelerates.

If you’re following Blackbaud’s moves in nonprofit tech, it’s worth broadening your perspective and exploring fast growing stocks with high insider ownership.

With Blackbaud’s shares trading well below analyst targets despite strong product momentum and signs of accelerating innovation, investors are left to consider whether the current dip presents a genuine buying opportunity or if the market is already pricing in future growth.

Most Popular Narrative: 13.3% Undervalued

Blackbaud's most-followed narrative pegs fair value at $75.17, a notable spread from its latest closing price of $65.18. This sets up a compelling debate about whether current levels reflect overlooked upside as analysts hold their ground on future prospects.

Aggressive and ongoing investments in product innovation, particularly in generative and Agentic AI, are expected to drive new monetizable offerings over the next year (including separately priced AI products like a virtual fundraiser), supporting incremental revenue streams and margin expansion from high-value software.

Read the complete narrative.

What exactly fuels the optimism behind this valuation? It’s not just about Blackbaud’s pace of AI innovation. Underneath is a bold prognosis for profit margins and future earnings growth, setting the stage for targets few would expect. If you want the full story behind this price forecast, the blueprint is just one click away.

Result: Fair Value of $75.17 (UNDERVALUED)

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

However, persistent margin pressures or intensified SaaS competition could erode the growth narrative and challenge current optimism around Blackbaud’s long-term outlook.

Find out about the key risks to this Blackbaud narrative.

Build Your Own Blackbaud Narrative

If you have a different perspective or want to dive into the numbers yourself, you can easily craft your own view in minutes, your way: Do it your way.

A great starting point for your Blackbaud research is our analysis highlighting 2 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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