TD Cowen on Braze Inc (BRZE): 'Best Smidcap Ideas: Fundamentals Are Improving; Valuation Is Lagging'

TD Cowen analyst J. Derrick Wood reiterated a Buy rating and $30.00 price target on Braze Inc (NASDAQ: BRZE).

The analyst commented: "Best Smidcap Ideas: Fundamentals Are Improving; Valuation Is Lagging; We see multiple compelling growth levers ahead, including enterprise wins/expansions from legacy competitors & material AI monetization via new SKUs kicking in next year. With improving fundamentals (i.e., up-ticking NRR & velocity of new customer wins) and shares at a discount to Smidcap peers, we think BRZE presents an attractive risk/reward. At ~1.9x EV/CY27E Sales, BRZE trades at a steep discount to its 20% + Smidcap peer group at ~3.7x. We think durable 20%+ growth, progression to double-digit op margins next year, and lack of seat-based pricing headwinds will help close this gap. Reiterate Buy & $30 PT (~2.8x EV/CY27E Sales, ~20x EV/CY27E FCF)."

For an analyst ratings summary and ratings history on Braze Inc click here. For more ratings news on Braze Inc click here.

Shares of Braze Inc closed at $21.66 yesterday.

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