Braze (BRZE) Valuation in Focus After Launching Advanced AI Marketing Features and Strategic Jasper Integration

Braze (BRZE) shares caught investor attention after the company announced new BrazeAI features and a strategic integration with Jasper. These developments expand its cross-channel automation and generative AI capabilities for marketers. These moves position Braze as an innovator in customer engagement technology.

See our latest analysis for Braze.

Braze’s rollout of advanced AI-powered marketing tools and its new partnership with Jasper signaled clear innovation, but the shares have struggled recently. The 30-day share price return is -13.03%, and the year-to-date share price has declined a significant 39.71%, with a one-year total shareholder return of -14.82%. These moves suggest shifting market sentiment. Even as the company reinforces its long-term growth strategy, momentum is still taking time to rebuild.

If you’re interested in the latest innovations in tech and customer engagement, it’s a great time to discover See the full list for free.

So given Braze’s accelerated pace of innovation but ongoing share price volatility, do recent declines signal that the market has overlooked underlying growth potential, or is future upside already reflected in today’s valuation?

Most Popular Narrative: 42% Undervalued

Braze’s most widely followed narrative places its fair value well above the last close of $26.16. This suggests a major gap between street target and the market’s current caution. The underlying numbers point to an aggressive outlook based on significant business model expansion and robust earnings potential.

“Braze's acquisition of OfferFit is expected to enhance AI-driven optimization capabilities and lead to revenue growth through deal size expansion and differentiation in the market. This investment should drive better earnings and net margins as OfferFit's sophisticated AI solutions integrate into Braze's platform.”

Read the complete narrative.

What could justify such a bold valuation jump? Core drivers include ambitious growth forecasts, improving net margins, and a profit model that would require multiple factors to align for Braze. Want the details on these pivotal financial assumptions and what they mean for future upside? Dive into the full narrative and see what’s fueling the optimism.

Result: Fair Value of $45.11 (UNDERVALUED)

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

However, ongoing integration challenges with OfferFit and rising costs from evolving international data laws could threaten Braze’s margin recovery and earnings trajectory.

Find out about the key risks to this Braze narrative.

Another View: Testing with Discounted Cash Flow

While the analyst price targets suggest Braze could be deeply undervalued, the SWS DCF model tells a different story. According to our DCF, Braze is currently trading above its calculated fair value. This means that even with high growth potential, market optimism may be priced in already. Does this challenge the optimism behind the bullish targets, or is the DCF missing something that only time will reveal?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Braze for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Braze Narrative

If you see things differently or want to dig into the data yourself, it’s easy to craft your own perspective in just a few minutes. Do it your way.

A great starting point for your Braze research is our analysis highlighting 2 key rewards and 2 important warning signs 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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