Stifel has trimmed its 12-month price target on Braze Inc. (NASDAQ:BRZE) to $40.00 from $45.00 but left its Buy rating intact. The adjustment comes against a backdrop of significant share-price weakness for the customer engagement software provider, which is trading at $17.79 and hovering close to its 52-week low of $17.28. Market-data indicates the stock’s relative strength index is in oversold territory.
Year-to-date, Braze shares have declined roughly 45%, a slide Stifel attributes in part to shifting sentiment driven by announcements from AI model vendors and AI-native companies. Those developments, Stifel says, have prompted investors to question the medium- to long-term sustainability of growth for certain software-as-a-service (SaaS) companies. Despite that unease, Stifel characterizes Braze as "a prime example of a company with an overlooked moat" and labels it a "potential AI winner," suggesting the firm sees durable competitive advantages at play.
Stifel also points out that Braze’s balance sheet remains healthy, with the company holding more cash than debt. The firm recognizes that while some incumbents could be displaced by emergent AI platforms, market participants are grappling with how to distinguish which subsectors and businesses possess broader and more resilient defenses against disruption.
Analyst reception to Braze’s recent quarterly results has been broadly positive. The company reported strong fiscal third-quarter performance characterized by sustained revenue and margin expansion. Needham highlighted an acceleration in organic revenue growth for the second consecutive quarter, citing a 22.3% organic growth rate, and reiterated a Buy rating while maintaining a $50 price target and naming Braze as its top pick for 2026.
Other firms also adjusted their views following the quarterly release. Oppenheimer increased its price target from $38 to $40, pointing to what it described as a "good beat-and-raise quarter" and noting the successful integration of the OfferFit acquisition. DA Davidson raised its target to $42 and kept a Buy rating, referencing stronger-than-expected revenue and improvements in non-GAAP operating margins. Cantor Fitzgerald maintained an Overweight rating with a $38 target, calling attention to a robust core business and leadership in AI-related functionality.
Operational milestones underlining the quarter’s results included high-volume messaging throughput during Cyber Week: the company processed more than 100 billion messages for the period, including over 60 billion sent between Black Friday and Cyber Monday, and reported 100% uptime during that timeframe.
While multiple analysts signaled confidence by keeping or raising price targets, Stifel’s reduction reflects investor nervousness around AI-driven disruption in the SaaS market and the difficulty of parsing which companies will benefit or be challenged by emerging models and platforms. At the same time, Braze’s financial metrics and recent operational outcomes provide counterpoints that several brokerages have cited in support of continued constructive ratings.