solder today
(As of 12/13/2024 ET)
- 52 week range
- $29.18
▼
$61.53
- Target price
- $53.74
soldering NASDAQ: FAST presents significant investment opportunities in 2025, including potential share price growth and acquisition prospects. The stock’s reversal is driven by sustained outperformance, approaching profitability and favorable analyst sentiment. The company’s in-demand customer engagement platform (CEP) further enhances the company’s acquisition appeal. Potential buyers include Salesforce. New York Stock Exchange: CRM and Adobe NASDAQ: ADBEwhich could use the platform to expand its cross-channel marketing capabilities and increase its value to advertisers. Salesforce, the world’s leading customer relationship management platform, is a natural buyer because Braze’s services complement its own, providing a path to upsell and cross-sell. Either way, investors will benefit.
Braze beats third-quarter results, raises forecasts, shares fall
Braze had a strong quarter with slow growth but still strong at over 22% and 300 basis points, better than consensus expectations. Strength was seen in the core subscription business, driven by new customers, major accounts, upsells and renewals. The total number of clients grew by 10%, with large clients (those with annual revenues of more than $500,000) growing by 24%. Net retention rate, a measure of revenue from existing customers, was 113% systemwide compared to last year and 116% among large customers as upsells and service penetration deepened.
Braze stock forecast for today
$53.74
Growth potential 29.08%Moderate purchase
Based on ratings from 20 analysts
| High forecast | $75.00 |
|---|---|
| Average forecast | $53.74 |
| Low forecast | $39.00 |
Braze Stock Forecast Details
The margin news is mixed, but it’s good for shareholders. The company’s gross profit fell 90 bps and losses persist due to share-based compensation, reinvestment and customer acquisition costs. However, operating losses narrowed on a GAAP and adjusted basis and were smaller than expected. The net result was $0.02 of adjusted earnings, three cents better than expected and an improvement on guidance.
The company’s management is also solid. Braze is forecasting another sequential increase in revenue in the fourth quarter, with revenue increasing 18% year-over-year and beating the consensus forecast reported by MarketBeat. The full-year outlook is equally strong and includes adjusted earnings per share of nearly $0.10, nearly double the market forecast. However, due to trends, Braze is likely to be cautious and outperforming results should be expected.
The reaction of analysts is ambiguous: companies are convinced of the growth potential of 30%
Analyst reactions to Braze’s third-quarter results and guidance have been mixed, including lowering, repeating and raising price targets. The takeaway is that more analysts are raising their targets, and the end result is a narrowing of the expected range based on the preliminary consensus target. The preliminary consensus target puts this stock at over 30% upside, enough to put the market at a new high and on track to complete a technical reversal. From the conversations, the company continues to perform well and growth prospects are positive, including profits expected to triple in 2025 and double next year.
The market’s reaction to Braze’s news is also mixed. The market retreated after the report, showing resistance at a critical level, as well as support at a critical level and the potential for continued growth. Support is visible in the group of moving averages including the 30-day, 150-day and 30-month EMA, which are on the cusp of the golden crossover.
The 30 and 50 day EMAs are already crossing; all the market can do is continue to move forward to confirm the model. In this scenario, the market could easily retest the critical resistance at $45 as it approaches the analyst consensus target of $53. Institutional activities should also be considered. Institutions have been buying shares of these tech companies every quarter this year, holding more than 90% of the shares in the fourth quarter and providing a strong tailwind for the market.
Before you consider Braze, you’ll want to hear this.
MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts were quietly telling their clients to buy now, before the broader market caught on… and Brase wasn’t on the list.
While Braze is currently a Moderate Buy, the top-rated analysts rate these five stocks as Strong Buys.
View five stocks here
Click the link below and we’ll send you MarketBeat’s list of seven stocks and why their long-term prospects are very promising.
Get this free report