Selected stock price target news of the day - June 10th, 2024

By: Matthew Otto

Braze Reports Q1 FY2025 Results, Exceeds Earnings Expectations and Provides Upbeat Guidance

Braze conducted its First Quarter Fiscal Year 2025 Earnings Conference Call, reporting a 33% year-over-year revenue increase, reaching $135.5 million, slightly impacted by a $750,000 reserve related to an April service outage. Without this impact, revenue would have been approximately $136.3 million.

Braze’s subscription revenue remained dominant, contributing 96% to the total top line. Customer base expanded by 13% to 2,102, with an increase in large customers spending over $500,000 annually, growing 29% to 212. This expansion contributed to a dollar-based net retention rate of 117% across all customers and 119% for large customers.

Braze reported a Q1 EPS of ($0.05), which was $0.05 better than the analyst estimate of ($0.10). The quarter saw Braze maintaining leverage, with an operating margin improvement of over 800 basis points year-over-year. The gross profit for the quarter was $91.9 million, representing a gross margin of 67.9%, slightly affected by the service outage. Operating loss reduced to $10 million from $16 million in the prior year, and net loss attributable to shareholders improved to $5.5 million or $0.05 per share, from a loss of $12.6 million or $0.13 per share in the previous year. Cash provided by operations was $19.4 million, and free cash flow was approximately $11.4 million after capital expenditures.

Looking ahead, Braze projects Q2 2025 EPS of ($0.03) to ($0.04), better than the consensus estimate of ($0.04), and revenue of $140.5 to $141.5 million, surpassing the consensus of $139.8 million. For the full fiscal year 2025, Braze expects total revenue between $577 million and $581 million, exceeding the consensus of $574 million, with an EPS of ($0.06) to ($0.10), compared to the consensus of ($0.09).

Analysts Maintain Outlook with Mixed Price Target Adjustments

Needham analyst Scott Berg reiterated a Buy and a $70 price target.
Citigroup analyst Tyler Radke maintained a Buy and raised the price target from $52 to $58.
JMP Securities analyst Patrick Walravens reiterated a Market Outperform and a $68 price target.
Raymond James analyst Brian Peterson maintained an Outperform and lowered the price target from $65 to $55.
Canaccord Genuity analyst David Hynes maintained a Buy and raised the price target from $50 to $53.
Piper Sandler analyst Brent Bracelin maintained an Overweight and lowered the price target from $66 to $55.

Which Analyst has the best track record to show on BRZE?

Analyst David Hynes (CANACCORD) currently has the highest performing score on BRZE with 7/13 (53.85%) price target fulfillment ratio. His price targets carry an average of $16.35 (44.61%) potential upside. Braze stock price reaches these price targets on average within 95 days.

Lyft’s Long-Term Financial Targets Spark Analyst Optimism

Lyft’s investor-day meeting unveiled long-term financial targets, including a cumulative free cash flow projection of approximately $2.3 billion from fiscal 2024 to 2027. Analysts responded positively to these revelations. Gordon Haskett’s Robert Mollins upgraded Lyft’s rating to Buy, citing solid upward revisions to consensus estimates and suggesting that investors might be underestimating Lyft’s potential. Mollins increased the price target to $20 from $17, reflecting a bullish outlook on Lyft’s future prospects.

Similarly, BofA Securities analyst Michael McGovern expressed optimism, pointing out growth and margin upside through the end of the year despite the long-term targets not being overwhelming. McGovern’s double upgrade of Lyft stock to Buy from Underperform, along with a price target increase to $20 from $15, reflects his confidence in Lyft’s ability to execute its strategic priorities. Deutsche Bank Research analyst Benjamin Black, while maintaining a Hold rating on Lyft with a $18 price target, noted that investors might have expected a share repurchase announcement, which did not materialize. Wedbush analyst Scott Devitt, who raised his price target for Lyft stock to $19 from $18, acknowledged the strength of the outlook but cautioned about execution risks given the multiyear nature of the guidance and uncertainty related to macroeconomic and competitive dynamics over an extended time horizon.

Varied Analyst Ratings with Positive Price Target Adjustments

TD Cowen analyst John Blackledge maintained a Hold and raised the price target from $16 to $18.
Morgan Stanley analyst Brian Nowak maintained an Equal-Weight rating and raised the price target from $17 to $18.
Fox Advisors analyst Steven Fox upgraded from Equal-Weight to Outperform and announced a $20 price target.
Goldman Sachs analyst Eric Sheridan maintained a Neutral rating and increased the price target from $19 to $21.
RBC Capital analyst Brad Erickson reiterated an Outperform rating and a $24 price target.
BMO Capital analyst Brian Pitz maintained a Market Perform rating and raised the price target from $18 to $19.

Which Analyst has the best track record to show on LYFT?

Analyst Ross Sandler (BARCLAYS) currently has the highest performing score on LYFT with 12/15 (80%) price target fulfillment ratio. His price targets carry an average of $2.22 (12.49%) potential upside. Lyft stock price reaches these price targets on average within 126 days.

DocuSign Faces Market Scrutiny Despite Earnings Beat: Future Outlook Remains Cautious

DocuSign unveiled its fiscal quarter results for the period ending April 30, 2024, reporting an EPS of $0.82, $0.03 better than the analyst estimate of $0.79. Total revenue surged to $709.6 million versus the consensus estimate of $707.33 million, marking a 7% year-over-year increase. Subscription revenue reached $691.5 million, up 8% from the previous year.

However, professional services and other revenue saw a slight dip, totaling $18.2 million, down by 18% year-over-year. DocuSign reported billings of $709.5 million, reflecting a 5% rise from the corresponding period last year. Notably, Docusign maintained its cash position, with net cash provided by operating activities amounting to $254.8 million, compared to $233.6 million in the same quarter last year. Additionally, free cash flow saw an increase, reaching $232.1 million, up from $214.6 million in the prior-year period.

Looking ahead, for the quarter ending July 31, 2024, Docusign anticipates total revenue in the range of $725 million to $729 million, versus the consensus of $726 million. Subscription revenue expected to reach $705 million to $709 million. Additionally, billings are projected to range between $715 million and $725 million. DocuSign aims for a non-GAAP gross margin of 80.5% to 81.5% and a non-GAAP operating margin of 27.0% to 28.0% for the same period.

Looking further ahead to the fiscal year ending January 31, 2025, DocuSign forecasts total revenue between $2.920 billion and $2.932 billion, versus the consensus of $2.93 million. Subscription revenue ranging from $2.844 billion to $2.856 billion. Billings for the fiscal year are expected to be between $2.980 billion and $3.030 billion. DocuSign aims for a non-GAAP gross margin of 81.0% to 82.0% and a non-GAAP operating margin of 26.5% to 28.0% for the fiscal year.

Analysts Adjust Price Targets Reflecting Market Caution

JMP Securities analyst Patrick Walravens reiterated a Market Outperform and a $84 price target.
Morgan Stanley analyst Josh Baer maintained an Equal-Weight rating and lowered the price target from $65 to $62.
Piper Sandler analyst Rob Owens maintained a Neutral rating but lowered the price target from $65 to $60.
RBC Capital analyst Rishi Jaluria kept a Sector Perform rating yet decreased the price target from $59 to $52.
BofA Securities analyst Brad Sills maintained a Neutral rating and downgraded the price target from $72 to $60.
Baird analyst William Power maintained a Neutral rating and lowered the price target from $65 to $55.

Which Analyst has the best track record to show on DOCU?

Analyst Karl Keirstead (UBS) currently has the highest performing score on DOCU with 20/22 (90.91%) price target fulfillment ratio. His price targets carry an average of $3.1 (5.26%) potential upside. DocuSign stock price reaches these price targets on average within 42 days.