DA Davidson starts Braze with a Neutral, advises near-term caution

As previously reported, DA Davidson initiated coverage of Braze with a Neutral rating and $34 price target. While stating they have "a very positive outlook" for Braze and view it as a leader in the emerging customer engagement software arena with a valuable offering for brands, the firm believes the possible rationalization of marketing budgets this year is a reason for "a little near term caution." The firm will look at January-end earnings and initial guidance for FY24 to better determine Braze’s ability to navigate the spending slowdown.