Braze (NASDAQ:BRZE) Stock Rating Lowered by DA Davidson

Braze (NASDAQ:BRZE) was downgraded by equities researchers at DA Davidson from a “buy” rating to a “hold” rating in a research report issued on Wednesday, Marketbeat Ratings reports. They presently have a $47.50 price target on the stock, up from their previous price target of $40.00. DA Davidson‘s target price points to a potential upside of 3.98% from the stock’s previous close.

Several other equities analysts have also weighed in on the stock. Citizens Jmp restated a “market outperform” rating and set a $35.00 price target on shares of Braze in a research report on Monday, October 5th. UBS Group lowered shares of Braze from a “buy” rating to a “hold” rating and set a $47.50 price target for the company. in a research report on Tuesday. Weiss Ratings upgraded shares of Braze from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday. Stephens lowered shares of Braze from an “overweight” rating to a “buy” rating and increased their price target for the company from $34.00 to $47.50 in a research report on Wednesday. Finally, Barclays restated an “equal weight” rating and set a $48.00 price target (up from $38.00) on shares of Braze in a research report on Tuesday. Seven investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Braze has an average rating of “Hold” and a consensus price target of $43.95.

Braze Stock Performance

NASDAQ BRZE opened at $45.68 on Wednesday. The firm has a market cap of $5.19 billion, a price-to-earnings ratio of -44.35 and a beta of 0.91. The company has a fifty day moving average price of $28.98 and a 200-day moving average price of $25.24. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.27 and a quick ratio of 1.27. Braze has a 1 year low of $15.26 and a 1 year high of $45.82.

Braze (NASDAQ:BRZE) last posted its quarterly earnings results on Tuesday, September 8th. The company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.03. The company had revenue of $227.23 million during the quarter, compared to analyst estimates of $220.27 million. Braze had a negative net margin of 13.55% and a negative return on equity of 16.11%. The firm’s revenue for the quarter was up 26.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.15 earnings per share. Braze has set its FY 2027 guidance at 0.640-0.650 EPS and its Q3 2027 guidance at 0.130-0.140 EPS. As a group, equities research analysts predict that Braze will post -0.70 EPS for the current fiscal year.

Insider Buying and Selling at Braze

In other Braze news, CTO Jonathan Hyman sold 42,000 shares of the company’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $32.47, for a total transaction of $1,363,740.00. Following the sale, the chief technology officer directly owned 1,143,219 shares of the company’s stock, valued at $37,120,320.93. This represents a 3.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Edward Mcdonnell sold 29,732 shares of the company’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $31.38, for a total transaction of $932,990.16. Following the sale, the executive directly owned 409,630 shares in the company, valued at approximately $12,854,189.40. This trade represents a 6.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 203,568 shares of company stock valued at $6,096,461 over the last three months. 12.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Braze

Several institutional investors have recently added to or reduced their stakes in the business. Versant Capital Management Inc lifted its holdings in Braze by 13.3% during the second quarter. Versant Capital Management Inc now owns 4,692 shares of the company’s stock valued at $102,000 after purchasing an additional 552 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its holdings in Braze by 3,650.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 825 shares of the company’s stock valued at $28,000 after purchasing an additional 803 shares during the last quarter. Citizens Financial Group Inc. RI lifted its holdings in Braze by 4.0% during the first quarter. Citizens Financial Group Inc. RI now owns 27,287 shares of the company’s stock valued at $644,000 after purchasing an additional 1,062 shares during the last quarter. Fifth Third Bancorp purchased a new stake in Braze during the first quarter valued at about $27,000. Finally, Essential Partners LLC lifted its holdings in Braze by 109.8% during the first quarter. Essential Partners LLC now owns 2,174 shares of the company’s stock valued at $51,000 after purchasing an additional 1,138 shares during the last quarter. 90.47% of the stock is owned by hedge funds and other institutional investors.

Key Braze News

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Salesforce will pay $47.50 per Braze share, valuing the transaction at approximately $5.66 billion and representing about a 58% premium to Braze’s prior closing price. The premium explains the stock’s surge and provides a defined potential exit value for shareholders if the deal closes. Salesforce Signs Definitive Agreement to Acquire Braze
• Positive Sentiment: UBS characterized the acquisition as a strong strategic fit at a reasonable price. Braze’s rapidly growing platform and real-time customer data could strengthen Salesforce’s Agentforce artificial-intelligence strategy and expand its marketing technology capabilities. Salesforce’s Braze deal wins UBS backing on strategy, but growth concerns remain
• Positive Sentiment: Trading activity has been unusually strong, including a reported 447% increase in call-option volume versus typical levels. The activity indicates speculative and arbitrage interest following the takeover announcement, although it does not change the transaction terms.
• Neutral Sentiment: The deal is expected to close in fiscal 2028, subject to shareholder approval and antitrust review. The delay leaves investors exposed to regulatory, financing and execution risks, while the spread below $47.50 reflects uncertainty over completion.
• Negative Sentiment: Citigroup downgraded Braze from Buy to Neutral and set a $47.50 price target, implying limited upside beyond the cash offer. With the takeover price now anchoring valuation, Braze’s standalone growth prospects are less relevant to near-term trading. Salesforce Fuels AI Engine With $5.66B Braze Buyout
• Negative Sentiment: Several investor-rights law firms are investigating whether the $47.50 consideration and sale process adequately protect shareholders, including potential conflicts, deal restrictions and whether competing offers were sufficiently pursued. These reviews could create negotiation or litigation risk, though they have not changed the announced terms. Braze Investor Alert

About Braze

Braze, Inc is a customer engagement software company that provides a platform for businesses to build, manage and measure personalized interactions with consumers. Its technology is designed to help brands communicate with customers across digital channels, including mobile applications, websites, email, SMS and messaging services.

The Braze platform supports customer data collection and segmentation, campaign creation, journey orchestration, experimentation and engagement analytics. Its capabilities include in-app and web messaging, push notifications, email marketing, content personalization and automated lifecycle campaigns.