Braze Stock Gets Bullish Nod as DA Davidson Raises Price Target on AI-Driven Earnings Beat
Following a quarter of surprisingly strong performance, the customer engagement platform Braze (NASDAQ: BRZE) is receiving a shower of analyst upgrades, with DA Davidson leading the charge by hiking its price target. The firm raised its target to $42 from $40, while keeping a “Buy” rating on the stock, a move that signals growing confidence in the company’s ability to capture market share in a rapidly evolving tech landscape.
This positive adjustment from DA Davidson comes directly on the heels of Braze’s impressive third-quarter fiscal 2026 results, which saw the company deliver a “strong topline beat” and better-than-expected operating margins. The analyst sentiment isn’t just about a one-off performance, however. It reflects management’s commitment to continued efficiency, including a stated goal of achieving an 8% non-GAAP operating margin in the upcoming fiscal year 2027.
What’s Driving the Optimism? Accelerated Growth and AI Leadership
The core of the recent enthusiasm is Braze’s accelerating business momentum. The company reported quarterly revenue of $191 million, a 25.5% jump year-over-year, which easily surpassed consensus expectations. Even more encouraging for investors is the pace of organic growth, which accelerated to 22.3% year-over-year, showing that the underlying business is gaining speed.
A major catalyst mentioned by analysts is the “growing demand for Braze AI,” highlighting the company’s push into artificial intelligence functionality, particularly through its BrazeAI Decisioning Studio, which was enhanced by the OfferFit acquisition. This focus on AI is crucial as it helps Braze stand out in the crowded customer engagement space, where it competes with legacy giants like Salesforce, Adobe, and Oracle.
Furthermore, Braze is demonstrating operational excellence at massive scale. The company reported its strongest quarter for sequential customer additions since the third quarter of fiscal 2023. This is not just theoretical growth, as demonstrated by the platform’s flawless execution during the peak holiday shopping season, where it processed over 100 billion messages during Cyber Week alone, all while maintaining 100% uptime.
A Slew of Analyst Upgrades
The DA Davidson move is part of a broader, overwhelmingly bullish trend across Wall Street. The recent earnings report has led to a flurry of updates from numerous firms. The analyst consensus for Braze is a “Strong Buy,” and the average price target now sits near $45.31. Stifel, Mizuho, and Wells Fargo, for example, have all raised their targets, with one firm even setting a high-end target of $68. This collective vote of confidence underscores the belief that Braze is well-positioned to continue displacing older solutions and consolidating the market, which is estimated to be a massive $30 billion opportunity.
While the stock has experienced some volatility over the past year, the recent performance and subsequent analyst revisions suggest a fundamental shift in its narrative. For investors, the growing consensus is that Braze is successfully transitioning from a promising growth story to a market leader with a clear path to sustainable profitability.
