Software company Blackline Inc (NASDAQ:BL) seems well-positioned to generate accelerating growth over the next few years, according to Rosenblatt Securities.
The Blackline Analyst: Analyst Robert Simmons initiated coverage with a Buy rating and price target of $65.
The Blackline Thesis: Studio360 has established the company as a vendor of choice, "and sets it up to succeed with AI," Simmons wrote in the initiation note.
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Blackline has improved its competitive positioning with its redesigned platform and has rolled out a pricing model "to align monetization and value," the analyst stated. These factors underpin "our confidence in the improving financial profile," he added.
The California-based company is poised to generate accelerating revenue growth over the next few years, to 10% exiting 2026 and 13% exiting 2027, while driving significant margin expansion of around 700 basis points (bps) through 2027, the analyst further said.
The coverage comes as several investors urge Blackline to pursue a potential sale following reported takeover interest by SAP SE, Bloomberg reported last month.
BL Price Action: Shares rose by 1.5% to $56.95 at the time of publication on Tuesday.
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