Blackbaud (BLKB): Evaluating Valuation After Major AI Expansion and Agents for Good Launch

Blackbaud (BLKB) just rolled out a major upgrade to its AI capabilities at bbcon 2025. The company introduced a new suite called Agents for Good and unveiled initiatives aimed at supporting broader AI adoption in the social impact sector.

See our latest analysis for Blackbaud.

Blackbaud’s latest AI announcements come as momentum around the stock has wavered. After posting a 3-year total shareholder return of 18.3% and a 5-year return of 9.6%, the past year saw a 25% drop in total return, which contrasts sharply with the buzz around its AI innovations. Recent price movement signals investors are weighing these growth ambitions against ongoing risk and past volatility.

If Blackbaud’s bold AI push has you curious about other innovators, now’s the perfect time to explore fast growing stocks with high insider ownership.

With Blackbaud trading at about a 25% discount to its average analyst price target and recent AI advancements making headlines, the big question remains: is this a buying opportunity, or has the market already priced in future growth?

Most Popular Narrative: 15.1% Undervalued

Blackbaud’s most widely followed narrative sets its fair value at $75.17, notably higher than the last close price of $63.81. This perspective suggests the current market is not fully reflecting certain underlying drivers.

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). This supports incremental revenue streams and margin expansion from high-value software.

Read the complete narrative.

Curious what bold growth levers underpin this premium? The narrative is betting on multiple financial inflection points such as innovative revenue sources, margin turnarounds, and shrinking share counts. Wonder how these intersect to support the fair value? Only the full narrative reveals the numbers and logic powering that upside.

Result: Fair Value of $75.17 (UNDERVALUED)

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

However, heightened competition from agile SaaS players or continued margin pressure from security investments could challenge Blackbaud’s profit outlook and growth story in the future.

Find out about the key risks to this Blackbaud narrative.

Build Your Own Blackbaud Narrative

Prefer to weigh the evidence yourself or bring a fresh perspective? You can shape your own take on Blackbaud's future in just minutes by using 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.

Looking for more investment ideas?

Don’t let opportunity pass you by. Level up your portfolio by checking out these handpicked stock ideas that tap into high-growth megatrends, hidden value, and market disruptions.

• Uncover tomorrow’s hidden gems by focusing on these 3573 penny stocks with strong financials with strong fundamentals and untapped upside potential.
• Begin your search for quality payouts by identifying these 18 dividend stocks with yields > 3% that could add income and stability to your investments.
• Explore advantages in the booming tech space with these 25 AI penny stocks driving advancements across AI and automation industries.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com