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Gartner, a firm that researches and grades business software, named Braze a leader in its first-ever report on email marketing platforms. The report ranked Braze first for its ability to handle promotional messages and triggered emails, which are automated notes sent after a customer takes a specific action.
This ranking helps explain why Salesforce is currently in the process of buying the company. While Braze started in mobile apps, its ability to handle high-speed data is clearly winning over traditional email markets. For those holding the stock, this validation supports the idea that Salesforce is paying for a superior technology that it currently lacks.
Source: Business Wire
Braze will release its financial results for the quarter that ended in October after the market closes on Tuesday, December 8. Because the company has already agreed to be acquired by Salesforce for $47.50 per share, it will not host a live call or provide a financial outlook for the coming months. For those who own the stock, these results are less about the long-term growth story and more about confirming the business remains on track until the sale closes. The stock is currently trading close to the agreed buyout price, which acts as a floor for the valuation while the deal moves through the final approval steps.
Source: Business Wire
Raymond James lowered its rating on the stock to Market Perform, which is its way of saying the stock is now fairly valued. This follows several other firms that have moved to the sidelines after Salesforce agreed to buy the company for $47.50 per share in cash.
With the stock now trading close to that buyout price, there is little room for it to move much higher on its own. This rating change is a routine step for analysts when a company is being acquired, as the final payout is now largely fixed and certain.
Source: Raymond James
Barclays, TD Cowen, and Stephens & Co. all lowered their ratings on the stock this week. These moves are routine when a company agrees to be acquired, as there is little room for the stock price to move beyond the agreed-upon payout.
Salesforce is buying the company for $47.50 per share in cash. With the stock now trading close to that level, analysts are moving to the sidelines because the big gains from the deal have already happened. The new average price target across all firms is about $44.
Source: Stephens & Co.
Citigroup downgraded Braze to Neutral after the company agreed to be bought by Salesforce for $47.50 per share. This is a routine move for analysts when a company is being acquired, as the stock price is now largely fixed to the deal's payout rather than the company's daily performance.
With the stock currently trading near $46, there is little room left for the price to move higher unless a competing bidder emerges, which is unlikely given the definitive agreement. If you own the stock, you are essentially waiting for the deal to close to receive the cash payout.
Source: Citigroup
Management has a solid history of clearing their own bars, though recent quarters were more uneven before a strong return to form in September.
| Expectation | |
|---|---|
| EPS | $0.14 |
| Revenue | $230M |