Braze shares rise after Goldman Sachs initiates coverage with a Buy rating, citing AI-driven market share gains from legacy tools.
Goldman Sachs initiated coverage of Braze (BRZE) with a Buy rating and a $34 price target on June 24, 2026. The firm highlighted Braze’s strong positioning to capture share from outdated marketing tools as AI adoption accelerates, driving demand for its customer engagement platform.
Braze reported fiscal first-quarter 2027 revenue of $211.0 million, up 30.2% year-over-year, marking its fourth consecutive quarter of organic growth acceleration. Non-GAAP operating income rose to $10.5 million from $2.8 million, while total customers grew to 2,713. The company guided for fiscal 2027 revenue of $895.0 million, reflecting continued momentum.
Earlier, Citi analyst Tyler Radke lowered Braze’s price target to $48 from $49 but maintained a Buy rating, calling the earnings report solid. CEO Bill Magnuson attributed growth to demand for AI tools like BrazeAI Operator and BrazeAI Agent Console.