Braze Shares Surge 7.4% on Goldman Sachs Upgrade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 26 2026
0mins
Source: Fool
- Upgrade Catalyst: Goldman Sachs analyst Callie Valenti initiated coverage on Braze with a 'Buy' rating and a $34 price target, approximately 77% above the current trading price, providing a strong buy signal for investors.
- Market Rebound Support: Amid a broader rebound in software stocks, Braze shares surged 7.4%, contrasting with the S&P 500 and Nasdaq Composite, which fell 0.7% and 0.5%, respectively, indicating Braze's relative strength in the market.
- Strong Financial Performance: In its latest quarter, Braze reported revenue of $211 million, a 30% year-over-year increase, alongside record free cash flow and an upward revision of its full-year guidance, highlighting the company's growth potential.
- Profitability Challenges: Despite significant revenue growth, Braze continues to struggle with profitability, posting a loss of nearly $27 million last quarter; if the company can reverse this trend, its stock price could see further gains.
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Analyst Views on BRZE
Wall Street analysts forecast BRZE stock price to rise
16 Analyst Rating
16 Buy
0 Hold
0 Sell
Strong Buy
Current: 24.150
Low
38.00
Averages
45.00
High
53.00
Current: 24.150
Low
38.00
Averages
45.00
High
53.00
About BRZE
Braze, Inc. operates a customer engagement platform that enables brands to be engaging. The Company's platform offers first-party context, transforms context with composable intelligence (models, agents, and operators), and delivers relevant interactions across channels. It provides professional services which enable customers to go onboard and use its platform, including certain professional services such as email deliverability support and technical support staff. Its Industry solutions include retail & ecommerce, financial services, travel & hospitality, media & entertainment, gaming, on demand, and QSR. Its products include BrazeAI and Braze Data Platform. Its BrazeAI features include BrazeAI decisioning studio, agent console, operator, liquid assistant and AI copywriter, personalized variant, BrazeAI item recommendations, BrazeAI predictive suite, and MCP server. Its BrazeAI Decisioning Studio is a multi-agent decisioning engine that personalizes communication.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Braze Shares Surge 7.4% on Goldman Sachs Upgrade
- Upgrade Catalyst: Goldman Sachs analyst Callie Valenti initiated coverage on Braze with a 'Buy' rating and a $34 price target, approximately 77% above the current trading price, providing a strong buy signal for investors.
- Market Rebound Support: Amid a broader rebound in software stocks, Braze shares surged 7.4%, contrasting with the S&P 500 and Nasdaq Composite, which fell 0.7% and 0.5%, respectively, indicating Braze's relative strength in the market.
- Strong Financial Performance: In its latest quarter, Braze reported revenue of $211 million, a 30% year-over-year increase, alongside record free cash flow and an upward revision of its full-year guidance, highlighting the company's growth potential.
- Profitability Challenges: Despite significant revenue growth, Braze continues to struggle with profitability, posting a loss of nearly $27 million last quarter; if the company can reverse this trend, its stock price could see further gains.
See More
Braze Shares Surge 7.4% on Goldman Sachs Buy Rating
- Rating Upgrade: Goldman Sachs analyst Callie Valenti initiated coverage of Braze on June 24 with a 'Buy' rating and a $34 price target, approximately 77% above its current trading level, providing significant support for the stock's rise.
- Market Rebound: Amid a broader recovery in software stocks, Braze shares surged 7.4% on Friday, contrasting with declines of 0.7% and 0.5% in the S&P 500 and Nasdaq Composite, respectively, indicating Braze's relative strength in the market.
- Financial Performance: In its latest quarter, Braze reported revenue of $211 million, a 30% year-over-year increase, alongside record free cash flow and an upward revision of its full-year guidance, despite still facing a loss of nearly $27 million.
- Investor Attention: Despite Braze's strong growth momentum, it was not included in The Motley Fool's current list of top investment stocks, reflecting ongoing concerns about its profitability, prompting investors to exercise caution.
See More
Software Stocks Decline Following New AI Model Release
- AI Model Impact: The release of Anthropic's new models, Claude Fable 5 and Claude Mythos 5, designed for complex knowledge work and coding, triggered a decline in software stocks, with Asana and Braze both falling 3.9%, indicating heightened market concerns over advancements in AI technology.
- Market Overreaction: In a 48-hour span, approximately $285 billion was wiped from software stock valuations, as fears that AI agents could render per-seat SaaS licensing obsolete intensified, creating a scenario referred to as the 'SaaSpocalypse' that undermined investor confidence.
- Macro Economic Pressures: The confirmation of an American Apache helicopter crash near Oman, coupled with Trump's response to an Iranian attack, added further macroeconomic headwinds to the software sector, particularly affecting the valuation of long-duration assets.
- Asana Stock Volatility: Asana has seen a 41.9% decline since the beginning of the year, trading at $7.54 per share, which is 50.9% below its 52-week high, reflecting a lack of confidence in its future growth, prompting investors to carefully assess the timing of potential purchases.
See More
Investment Comparison: Salesforce vs. Braze
- Salesforce Financial Performance: In FY 2026, Salesforce achieved nearly $41.5 billion in revenue, reflecting a 9.6% year-over-year growth, with a net income of approximately $7.5 billion and a net margin of around 18%, underscoring its strong market position and profitability in customer relationship management.
- Braze Growth Potential: Braze reported revenue of nearly $738.2 million in the same fiscal year, marking a 24.4% increase year-over-year, although it incurred a net loss of about $131.3 million, resulting in a net margin of -17.8%, indicating robust market demand despite ongoing profitability challenges.
- Risks and Competition: Salesforce faces intense competition from major software companies like Microsoft and Alphabet, alongside cybersecurity risks and evolving data privacy regulations, while Braze relies on third-party infrastructure, exposing it to compliance risks and challenges in brand recognition.
- Valuation Comparison: Salesforce's forward P/E ratio stands at 14.3x, making it more attractive compared to Braze's 37.9x, while Braze's P/S ratio is 3.7x, highlighting its relative value in the market, catering to investors with varying risk appetites.
See More
Investment Comparison: Salesforce vs. Braze
- Salesforce Financial Performance: In FY 2026, Salesforce achieved nearly $41.5 billion in revenue, reflecting a 9.6% year-over-year growth, with a net income of approximately $7.5 billion and a net margin of around 18%, showcasing its stable profitability and strong market position.
- Braze Growth Potential: Braze reported revenue of about $738.2 million in the same fiscal year, marking a 24.4% increase year-over-year, despite a net loss of nearly $131.3 million, indicating its high-risk, high-reward potential in rapid expansion.
- Market Competition Landscape: Salesforce faces intense competition from major software companies like Microsoft and Alphabet, while Braze competes with well-known providers like Adobe, highlighting the market pressures and challenges both companies encounter in their respective fields.
- Investor Choice Considerations: Salesforce is more suitable for conservative investors due to its stable cash flow and established business model, whereas Braze appeals to those seeking high growth and higher risk, reflecting the diverse needs of investment strategies.
See More
Braze Stock Declines Following Quarterly Report
- Quarterly Performance Overview: Braze's Q1 report revealed adjusted earnings of $0.10 per share on sales of $211 million, exceeding Wall Street's forecast by $5.8 million; however, the stock still fell by 4.2%.
- Sales Outlook Raised: The company raised its full-year sales target to between $895 million and $899 million, suggesting an annual growth of approximately 22%, indicating confidence in future performance, yet the market reaction was negative.
- Gross Margin Decline: Despite a year-over-year revenue increase of about 30%, the adjusted gross margin fell from 69.3% to 67.4%, raising investor concerns about profitability, which contributed to a 9.4% intraday drop in stock price.
- Market Reaction Analysis: The decline in Braze's stock price, despite the S&P 500 rising 0.6% and the Nasdaq Composite up 0.9%, reflects investor caution regarding the company's future profitability, potentially impacting market confidence.
See More
Braze Shares Surge 7.4% on Goldman Sachs Upgrade
- Upgrade Catalyst: Goldman Sachs analyst Callie Valenti initiated coverage on Braze with a 'Buy' rating and a $34 price target, approximately 77% above the current trading price, providing a strong buy signal for investors.
- Market Rebound Support: Amid a broader rebound in software stocks, Braze shares surged 7.4%, contrasting with the S&P 500 and Nasdaq Composite, which fell 0.7% and 0.5%, respectively, indicating Braze's relative strength in the market.
- Strong Financial Performance: In its latest quarter, Braze reported revenue of $211 million, a 30% year-over-year increase, alongside record free cash flow and an upward revision of its full-year guidance, highlighting the company's growth potential.
- Profitability Challenges: Despite significant revenue growth, Braze continues to struggle with profitability, posting a loss of nearly $27 million last quarter; if the company can reverse this trend, its stock price could see further gains.
See More
Braze Shares Surge 7.4% on Goldman Sachs Buy Rating
- Rating Upgrade: Goldman Sachs analyst Callie Valenti initiated coverage of Braze on June 24 with a 'Buy' rating and a $34 price target, approximately 77% above its current trading level, providing significant support for the stock's rise.
- Market Rebound: Amid a broader recovery in software stocks, Braze shares surged 7.4% on Friday, contrasting with declines of 0.7% and 0.5% in the S&P 500 and Nasdaq Composite, respectively, indicating Braze's relative strength in the market.
- Financial Performance: In its latest quarter, Braze reported revenue of $211 million, a 30% year-over-year increase, alongside record free cash flow and an upward revision of its full-year guidance, despite still facing a loss of nearly $27 million.
- Investor Attention: Despite Braze's strong growth momentum, it was not included in The Motley Fool's current list of top investment stocks, reflecting ongoing concerns about its profitability, prompting investors to exercise caution.
See More
Software Stocks Decline Following New AI Model Release
- AI Model Impact: The release of Anthropic's new models, Claude Fable 5 and Claude Mythos 5, designed for complex knowledge work and coding, triggered a decline in software stocks, with Asana and Braze both falling 3.9%, indicating heightened market concerns over advancements in AI technology.
- Market Overreaction: In a 48-hour span, approximately $285 billion was wiped from software stock valuations, as fears that AI agents could render per-seat SaaS licensing obsolete intensified, creating a scenario referred to as the 'SaaSpocalypse' that undermined investor confidence.
- Macro Economic Pressures: The confirmation of an American Apache helicopter crash near Oman, coupled with Trump's response to an Iranian attack, added further macroeconomic headwinds to the software sector, particularly affecting the valuation of long-duration assets.
- Asana Stock Volatility: Asana has seen a 41.9% decline since the beginning of the year, trading at $7.54 per share, which is 50.9% below its 52-week high, reflecting a lack of confidence in its future growth, prompting investors to carefully assess the timing of potential purchases.
See More
Investment Comparison: Salesforce vs. Braze
- Salesforce Financial Performance: In FY 2026, Salesforce achieved nearly $41.5 billion in revenue, reflecting a 9.6% year-over-year growth, with a net income of approximately $7.5 billion and a net margin of around 18%, underscoring its strong market position and profitability in customer relationship management.
- Braze Growth Potential: Braze reported revenue of nearly $738.2 million in the same fiscal year, marking a 24.4% increase year-over-year, although it incurred a net loss of about $131.3 million, resulting in a net margin of -17.8%, indicating robust market demand despite ongoing profitability challenges.
- Risks and Competition: Salesforce faces intense competition from major software companies like Microsoft and Alphabet, alongside cybersecurity risks and evolving data privacy regulations, while Braze relies on third-party infrastructure, exposing it to compliance risks and challenges in brand recognition.
- Valuation Comparison: Salesforce's forward P/E ratio stands at 14.3x, making it more attractive compared to Braze's 37.9x, while Braze's P/S ratio is 3.7x, highlighting its relative value in the market, catering to investors with varying risk appetites.
See More
Investment Comparison: Salesforce vs. Braze
- Salesforce Financial Performance: In FY 2026, Salesforce achieved nearly $41.5 billion in revenue, reflecting a 9.6% year-over-year growth, with a net income of approximately $7.5 billion and a net margin of around 18%, showcasing its stable profitability and strong market position.
- Braze Growth Potential: Braze reported revenue of about $738.2 million in the same fiscal year, marking a 24.4% increase year-over-year, despite a net loss of nearly $131.3 million, indicating its high-risk, high-reward potential in rapid expansion.
- Market Competition Landscape: Salesforce faces intense competition from major software companies like Microsoft and Alphabet, while Braze competes with well-known providers like Adobe, highlighting the market pressures and challenges both companies encounter in their respective fields.
- Investor Choice Considerations: Salesforce is more suitable for conservative investors due to its stable cash flow and established business model, whereas Braze appeals to those seeking high growth and higher risk, reflecting the diverse needs of investment strategies.
See More
Braze Stock Declines Following Quarterly Report
- Quarterly Performance Overview: Braze's Q1 report revealed adjusted earnings of $0.10 per share on sales of $211 million, exceeding Wall Street's forecast by $5.8 million; however, the stock still fell by 4.2%.
- Sales Outlook Raised: The company raised its full-year sales target to between $895 million and $899 million, suggesting an annual growth of approximately 22%, indicating confidence in future performance, yet the market reaction was negative.
- Gross Margin Decline: Despite a year-over-year revenue increase of about 30%, the adjusted gross margin fell from 69.3% to 67.4%, raising investor concerns about profitability, which contributed to a 9.4% intraday drop in stock price.
- Market Reaction Analysis: The decline in Braze's stock price, despite the S&P 500 rising 0.6% and the Nasdaq Composite up 0.9%, reflects investor caution regarding the company's future profitability, potentially impacting market confidence.
See More
