Braze (BRZE) is positioned for a favorable fiscal Q2 setup as demand for its AI-driven decisioning and orchestration products remain resilient despite broader concerns over software spending, Oppenheimer said in a Thursday note.
Oppenheimer expects fiscal Q2 revenue of $220 million, up 22% year over year, and adjusted EPS of $0.15, with research checks pointing to potential upside to estimates, the note said.
The analysts said fiscal Q2 current remaining performance obligations will be a key indicator of sustained growth acceleration, although comparisons may become tougher in fiscal H2 2027 as Braze laps the OfferFit acquisition.
Meanwhile, the analysts flagged potential margin pressure from additiona services capacity needed to support Decisioning Studio's ramp, noting that strong AI product demand could be offset by higher services requirements that weigh on gross margins.
Oppenheimer maintained its outperform rating on the stock, while raising its price target to $36 from $30.
Shares of the company were up more than 9% in Thursday trading.
Price: $33.66, Change: $+2.85, Percent Change: +9.23%