Piper Sandler Lowers Braze Target to $30, Maintains Overweight
Piper Sandler lowered its price target on Braze to $30 from $50 while maintaining an Overweight rating as part of a broader software multiple reset. In Q3 fiscal 2026 Braze reported $191 million revenue, up 25.5% year-over-year with a 6% sequential gain, adding 106 net new customers in the quarter—the strongest in three years.
1. Piper Sandler Revises Braze Price Target
Piper Sandler lowered Braze’s price target to $30 from $50 following a transfer of coverage, yet maintained an Overweight rating. The adjustment reflects a cautious stance on sector valuations rather than a specific critique of near-term fundamentals or upcoming quarterly results.
2. Broader Software Multiple Reset
The target reduction was part of a wider reset across the platforms and applications group, where the firm trimmed targets and ratings on multiple software names. Concerns over seat-compression and ‘vibe coding’ narratives are viewed as constraints on valuation expansion across the software sector.
3. Q3 Fiscal 2026 Results
Braze delivered $191 million in Q3 fiscal 2026 revenue, marking a 25.5% increase year-over-year and a 6% sequential rise. These figures underscore continued demand for its cloud-based customer engagement tools despite a restrained spending environment in enterprise software.
4. Customer Growth Momentum
The company added 106 net new customers during the quarter and 317 over the past twelve months, representing its strongest customer acquisition quarter in three years. This robust growth highlights Braze’s effectiveness in expanding its market penetration within customer engagement and data-driven marketing.