Citizens has trimmed its price target for BlackLine (NASDAQ:BL) to $70.00 from $80.00, while continuing to carry a Market Outperform rating on the financial software company. The revised target remains notably above InvestingPro's Fair Value estimate, a gap the firm flagged as an indicator the stock may be trading at a premium to that internal benchmark.
The change comes as BlackLine prepares to release its fourth-quarter earnings after the market close on Tuesday, February 10. According to InvestingPro data referenced by the analyst firm, a group of 12 analysts has lowered their earnings estimates for the upcoming period. Despite those downward revisions, consensus expectations hold that BlackLine will remain profitable, with a projected earnings per share of $2.61 for fiscal year 2025.
Citizens pointed to several governance and market developments in explaining the reduction. On February 2, Engaged Capital nominated three directors to BlackLine's board, adding pressure to the company's leadership structure. Separately, the closure of AI accounting company Botkeeper was cited by the analyst firm as a factor affecting its view.
To supplement its views, Citizens reported conducting recent channel checks that produced seven distinct data points; six were positive and one negative. The firm described those signals as providing some offset to the concerns raised by the board nominations and the Botkeeper closure.
BlackLine's share price has fallen about 20% year-to-date, a decline Citizens contrasted with a roughly 2% gain for the Russell 3000 index over the same period. The company has also been active on the corporate development front: it announced the acquisition of WiseLayer, an AI agent provider focused on finance and accounting processes. Financial terms of the WiseLayer deal were not disclosed. Citizens noted that WiseLayer previously raised a $7 million seed round led by Canaan Partners.
Market reactions to the WiseLayer acquisition included Cantor Fitzgerald maintaining a Neutral rating on BlackLine and keeping its price target at $58.00.
Board composition and director changes feature prominently in the recent coverage of BlackLine. Tom Unterman, a board member since 2010, has signaled plans to retire in 2026. At the same time, Engaged Capital has indicated plans to nominate four director candidates to BlackLine’s board at the company's 2026 annual meeting. The activist firm has articulated concerns that the board rejected an acquisition offer and has alleged entrenchment efforts. Engaged Capital holds in excess of one million shares of BlackLine and has publicly criticized the company's leadership for what it describes as underperforming stock performance and decelerating revenue growth.
Other personnel movement connected to BlackLine includes Andres Botero, who formerly held executive roles at the company and has been named Chief Marketing Officer at Horizon3.ai.
The convergence of activist nominations, a recent acquisition with undisclosed terms, and analyst downgrades leaves BlackLine approaching its upcoming earnings report under heightened scrutiny. Investors and market participants will be watching the fourth-quarter results and any management commentary closely for clarification on near-term performance and the strategic implications of recent corporate actions.