Here's How Analysts View Braze Post Q1 Beat - Braze (NASDAQ:BRZE)

Analysts acknowledged Braze, Inc's BRZE Q1 beat amid macro headwinds.
Piper Sandler analyst Brent Bracelin maintained Braze with an Overweight and cut the price target from $65 to $42 based on lower growth assumptions given increasing external risks.
Despite increasing macro headwinds, BRZE delivered another strong quarter.
Increasing investments in direct-to-consumer (DTC) and first-party data stacks have more than offset macro headwinds, giving leadership further optimism about the growth prospects for the remainder of the year.
Net retention metrics remained firm against slowing consumer spending headwinds, reinforcing the all-weather growth prospects inherent in the MAU-based pricing model.
Needham analyst Scott Berg had a Buy rating with a price target of $70.
Berg acknowledged the stellar Q1 driven by billings growth and cRPO growth.
All customer metrics remain at the high end, unaffected by any demand deceleration affecting other companies in the firm's coverage.
Management commentary reinstated its view that newer greenfield functionality like what Braze brings can hold up well during a macro downturn.
He did not expect the FCF margin level to persist as the company invested in near-term growth opportunities.
Raymond James analyst Brian Peterson maintained an Outperform and slashed the price target from $65 to $40.
The Q1 results broadly exceeded expectations, with the full-year growth/margin outlook also moving higher, setting it apart from other software companies that cited currency and/or demand headwinds as drivers for a lower growth forecast.
The revenue growth and billings beat reflect broad-based bookings strength, with a positive return on its growth investments.
He believes that BRZE's omnichannel and streaming architecture represent points of differentiation in attracting new B2C customers and should allow Braze to maintain a superior growth profile for the foreseeable future.
JMP Securities analyst Patrick Walravens maintained a Market Outperform and cut the price target from $75 to $52.
The re-rating reflects multiple compression amongst peers.
Price Action: BRZE shares traded higher by 14.71% at $33.72 on the last check Tuesday.

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