Braze (BRZE) has drawn investor interest following its announcement of new BrazeAI features and a strategic integration with Jasper, enhancing its cross-channel automation and generative AI marketing capabilities. These initiatives position Braze as a leader in customer engagement technology innovation. Despite these advancements, Braze’s shares have faced recent challenges, showing a 30-day return of -13. 03%, a year-to-date decline of 39. 71%, and a one-year total shareholder return of -14. 82%, reflecting shifting market sentiment. While the company strengthens its long-term growth strategy, share momentum remains subdued. With Braze accelerating innovation amid share price volatility, the key question is whether recent declines reflect an overlooked growth potential or if future upside is already priced in. Most Popular Outlook: 42% Undervalued The prevailing analyst narrative values Braze significantly above its last closing price of $26. 16, suggesting a disconnect between cautious market pricing and bullish expectations. This optimism arises from anticipated business expansion and strong earnings potential. For example, Braze’s acquisition of OfferFit is expected to enhance AI-driven optimization, expanding deal size and differentiation, which should improve earnings and net margins as OfferFit’s solutions integrate into Braze’s platform. Drivers supporting a valuation increase include ambitious growth forecasts, improving net margins, and a profit model dependent on multiple favorable factors aligning. For detailed financial assumptions and their implications for upside, the full analysis provides deeper insight. Fair Value Estimate: $45. 11 (UNDERVALUED) However, challenges such as integrating OfferFit and rising costs tied to international data regulations could impact margin recovery and earnings growth. Alternative Perspective: Discounted Cash Flow (DCF) Analysis Contrasting analyst targets, Simply Wall St’s DCF model suggests Braze trades above fair value, implying that market optimism might already be priced in.

This raises the question of whether bullish forecasts are overly optimistic or if the DCF model overlooks future factors that time will reveal. Simply Wall St conducts daily DCF analyses on global stocks, offering full transparency of calculations. Users can follow results, set alerts, or utilize screening tools to identify opportunities and receive notifications about new matches tailored to their investment criteria. Create Your Own Braze Perspective Investors can easily develop personalized views by exploring underlying data and analysis, beginning with factors highlighted as crucial to Braze’s investment case. Seeking More Investment Ideas? Capitalize on timely opportunities with powerful tools designed to enhance portfolio decisions: - Discover undervalued companies trading below intrinsic value with potential for gains. - Explore innovators leading in AI, automation, and digital disruption. - Identify income-generating stocks featuring strong yields and consistent dividends. This overview from Simply Wall St is for informational purposes only, based on historical data and analyst forecasts using an unbiased approach. It is not financial advice and does not consider individual financial situations or objectives. The analysis excludes the latest price-sensitive events or qualitative factors. Simply Wall St holds no positions in Braze or any mentioned stocks.