DA Davidson Elevates Braze Price Target to $42 Amid Strategic Growth Signals

DA Davidson upgraded its price target for Braze Inc. (BRZE), raising it to $42 per share from $40, signaling stronger expectations for the company’s performance in the coming fiscal period. The adjustment follows a review of Braze’s expanding client base, recurring revenue trends, and integration capabilities across messaging and analytics tools. The firm emphasized the company’s leadership in the customer engagement space, particularly its ability to deliver personalized cross-channel experiences at scale. Braze reported third-quarter revenue of $148.6 million, marking a 20% year-over-year increase, with net dollar retention exceeding 115%. These metrics highlight the platform's stickiness and upsell potential, key factors in the firm’s reassessment. The company also achieved a 46% increase in new logos during the quarter, suggesting broadening market appeal beyond its core enterprise clients. The price target adjustment reflects a broader market shift toward digital experience platforms, particularly those with AI-driven personalization features. In response, BRZE’s stock saw a 2.5% intraday gain following the announcement, outperforming the broader technology sector. Analysts note that Braze’s strategic partnerships with major cloud providers and its recent enhancements to its AI-powered engagement engine are likely to drive future margin expansion. Investors and institutional holders are closely monitoring Braze’s ability to maintain its growth trajectory amid increasing competition from established players in the marketing automation space. The revised target suggests that DA Davidson views the company as well-positioned to capture market share in a high-growth segment.