Cantor Fitzgerald on Wednesday reduced its price target for BlackLine (NASDAQ:BL) to $50.00 from $58.00, while maintaining a Neutral rating on the provider of financial close and accounting automation software. The brokerage said the move better aligns BlackLine’s valuation with group multiples for a standalone software company in the current market environment.
BlackLine shares are trading at $42.52, which the research note observes sits close to the stock's 52-week low of $40.82. InvestingPro metrics cited in the note indicate the shares may be undervalued on some measures, even as the company reports a relatively high price-to-earnings ratio of 35.78.
Cantor Fitzgerald described BlackLine’s 2025 performance as "encouraging," but emphasized that additional improvement in growth is necessary to return revenue expansion to the low double-digit range - a level the firm says would be required to meaningfully propel the stock higher. According to InvestingPro data included in the note, BlackLine’s revenue increased 7.21% over the past twelve months, and consensus analyst estimates point to roughly 7% revenue growth for fiscal 2026.
The research team also highlighted persistent investor skepticism over whether traditional software-as-a-service, or SaaS, vendors can hold off competition from AI-native entrants and the expanding footprint of large language model providers. That concern is visible in analyst behavior: InvestingPro shows that 12 analysts have recently revised their earnings estimates lower for BlackLine's upcoming reporting period.
Despite these headwinds, Cantor Fitzgerald continues to view BlackLine as a "quality asset from a tech perspective for potential acquirers," and expects strategic buyers and private equity to remain interested should growth pick up.
Separately, BlackLine reported fourth-quarter 2025 results that beat Wall Street expectations on both the top and bottom lines. The company delivered earnings per share of $0.63 versus the $0.59 analysts had forecast, and reported revenue of $183.18 million compared with an expected $182.98 million.
The analyst community remains split. Morgan Stanley lowered its price target to $68.00 from $73.00 while keeping an Overweight rating, flagging constructive growth signals including a 13% increase in contract revenue performance obligations and a 10% rise in annual recurring revenue. Citizens reiterated a Market Outperform rating with a $70.00 target, pointing to BlackLine's potential to evolve from a SaaS vendor toward an AI-driven software profile. By contrast, Goldman Sachs maintained a Sell rating and a $44.00 target, expressing concern about the sustainability of BlackLine’s growth metrics.
The company missed subscription revenue targets by roughly 50 basis points in the most recent quarter, but that shortfall was counterbalanced by stronger-than-expected professional services revenue, according to the reporting and analyst commentary. Together, the earnings beat and the range of analyst reactions illustrate differing views on how durable BlackLine's momentum is and how it should be valued today.
Context note: The update from Cantor Fitzgerald recalibrates valuation assumptions for BlackLine in light of current multiples and a competitive landscape that includes increasing AI-native activity. Analysts continue to watch revenue composition, contract metrics, and recurring revenue trends as indicators of whether the company can reaccelerate growth.