UBS Says Braze Stock Is A Buy: What Investors Need To Know

UBS initiated coverage on customer engagement platform Braze Inc BRZE on Monday. 

What Happened: The analyst firm initiated coverage on Braze with a Buy rating and announced a $53 price target. 

Braze trades roughly in line with its peers based on the company's sustainable growth in the low-30s, but UBS believes Braze can grow in the mid-30s percent range moving forward, which should set the stock up to outperform. 

The analyst firm's upbeat outlook is being backed by positive feedback from more than 10 channel checks on demand trends. UBS expects Braze to remain a top beneficiary due to its strong lead in the space. The only peer who poses risk to Braze's lead is Twilio Inc TWLO, UBS added.

The firm also believes that Braze is more recession-resistant than most of its peers. Ad spend was flagged as the first area to cut in a downturn, but Braze could stand to benefit as the company offers lower costs than most of its competition.  

"We view BRZE’s recession risk exposure as in-line with the middle of front-office peers, as its average new logo/international revs mix and up-market presence help to offset possible negatives," UBS said.

From Last Month: Read Needham's Views On Braze, EPAM, MongoDB

BRZE Price Action: Braze has a 52-week high of $98.77 and a 52-week low of $27.09, according to data from Benzinga Pro.

The stock was up 2.75% at $43.33 at time of publication.

Photo: courtesy of Braze.