Shares of Braze Inc. (NASDAQ:BRZE) are climbing on Tuesday ahead of the software company’s first-quarter results report on Wednesday.
BTIG analyst Nick Altmann expects quarterly results to show organic revenue growth of 22.7% in Q1 and management to modestly raise their growth guidance for fiscal 2027.
The Braze Analyst: Altmann maintained a Buy rating and price target of $30.
The Braze Thesis: The company had reiterated its guidance for both the first quarter and fiscal 2027 when it announced the departure of CFO Isabelle Winkles,Altmann said in the note.
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Given the revenue and earnings growth reported over the past several quarters, investors are more likely to focus on cRPO (current remaining performance obligations) growth and forward-looking commentary around Decisioning Studio during the first-quarter earnings call, he added.
"For cRPO, we model 26% and see slight upside driven by continued enterprise bookings strength as well as continued improvements with expansion bookings," Altmann wrote.
The analyst mentioned the following takeaways from BTIG's fieldwork about the company:
- Continued large enterprise traction, with partners citing better net-new logo adoption and an accelerating pipeline
- Partners and customers citing plans for expansion with BrazeAI Decisioning Studio
- Early interest in Braze’s newer AI offerings of BrazeAI Agent Console and BrazeAI Operator
- Braze remains well-positioned competitively, with no meaningful signs of marketing technology (MarTech) budgets being negatively impacted by GenAI/agentic
Fieldwork also suggests that companies are activity replacing Salesforce Inc (NYSE:CRM) and Adobe Inc (NASDAQ:ADBE), while Braze is "more frequently surfacing in competitive bake-offs," he further wrote.
BRZE Price Action: Shares of Braze had risen by 3.70% to $25.25 at the time of publication on Tuesday.
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