Braze (BRZE) is back in focus after its latest quarterly report showed 25.5% year on year revenue growth, with results ahead of expectations on EBITDA and billings, prompting fresh investor interest in the stock.

Despite the strong quarter, Braze’s recent share price performance has been mixed, with a 30 day share price return of 16.91% and a 1 year total shareholder return of 29.46%. The 90 day share price return of 14.95% suggests that momentum has been recovering more recently.

If this kind of earnings driven move has your attention, it could be a useful moment to widen your search across high growth tech and AI stocks for other potential opportunities in similar areas.

With Braze now valued close to some analysts’ estimates of intrinsic worth and trading at a discount to the average price target, the key question is whether there is still a buying opportunity here or if the market is already pricing in future growth.

Most Popular Narrative: 35.6% Undervalued

Compared with Braze’s last close at US$30.07, the most followed narrative points to a fair value of US$46.70, framing a sizeable valuation gap that hinges on how AI driven customer engagement plays out.

Braze's acquisition of OfferFit is expected to enhance AI-driven optimization capabilities and lead to revenue growth through deal size expansion and differentiation in the market. This investment should drive better earnings and net margins as OfferFit's sophisticated AI solutions integrate into Braze's platform.

Curious what kind of revenue pace and margin lift would need to materialize to back that higher fair value and premium future earnings multiple projections? The full narrative walks through those assumptions in detail and shows how they connect to Braze’s current AI product roll out and customer adoption pipeline.

Result: Fair Value of $46.70 (UNDERVALUED)

However, the bullish AI narrative could be knocked off course if OfferFit integration drags on margins or if evolving data laws push costs higher than expected.

Another View on Valuation

While the popular narrative points to a sizeable 35.6% discount to fair value at US$46.70, our DCF model paints a more muted picture. On that measure, Braze at US$30.07 sits only about 0.2% below an estimated fair value of US$30.15, which feels more like fair pricing than a clear bargain. Which lens do you trust more for your own thesis?

Build Your Own Braze Narrative

If you are not fully on board with these views or simply prefer to weigh the numbers yourself, you can pull the inputs, test your own assumptions and build a fresh thesis in just a few minutes, Do it your way.

A great starting point for your Braze research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Ready for more stock ideas?

If Braze has piqued your interest, do not stop here. Widen your watchlist by scanning other focused stock sets that could suit your style and goals.

• Target potential mispricings by checking out these 879 undervalued stocks based on cash flows that might align with your preferred risk and return profile.
• Tap into the AI theme and see which businesses stand out across these 28 AI penny stocks before the crowd pays closer attention.
• Position your portfolio for income potential by reviewing these 12 dividend stocks with yields > 3% that currently offer yields above 3%.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.