Why Braze Stock Beat the Market Today

Key Points

• The CRM specialist was the subject of a rather upbeat analyst note.

• That pundit is very convinced the stock is a buy.

• 10 stocks we like better than Braze ›

On a Wednesday wedged between its latest quarterly earnings release and a major customer event, Braze (NASDAQ: BRZE) had a fine day on the stock market. The company's shares rose by more than 2%, on the back of a positive note from an analyst tracking the stock. What's more, this was on a day when the S&P 500 (SNPINDEX: ^GSPC) dipped underwater, closing 0.1% lower that trading session.

Bolstering the buy case

That analyst note came from Stifel's Parker Lane, who before the market open reiterated his buy recommendation and $40 per-share price target on Braze's stock in a new update.

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Image source: Getty Images.

According to reports, Lane justified this by pointing to Braze's performance in the second quarter of fiscal 2026, the results of which were published earlier this month.

The customer relationship management specialist's revenue surged 24% higher year over year to $180 million, while the non-GAAP (generally accepted accounting principles) adjusted bottom line expanded by 85% to nearly $17 million. Both figures topped the consensus analyst estimates.

Lane wrote in his Braze update that despite the post-earnings share price rise, the company's stock is still undervalued. That's because, in his view, it's merely at the beginning of a vast opportunity to sell its artificial intelligence (AI)-enhanced customer engagement platform to eager clients.

A fine stock to own, say most pundits

The Stifel analyst's view on Braze's future is more or less in line with the typical analyst take. According to data compiled by MarketBeat.com, of the 21 pundits tracking the stock, 20 currently have buy recommendations (or the equivalent) on Braze. The one dissenter rates the company as a hold.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Braze. The Motley Fool has a disclosure policy.