Anika Begay
Oppenheimer changed its forecast for Backblaze Inc (NASDAQ:BLZE) shares on Friday, cutting the price target from $11 to $10, while maintaining an Outperform rating on the stock.
The change follows Backblaze’s second-quarter earnings for fiscal 2024, which beat expectations and prompted the company to raise its full-year guidance.
Backblaze’s second-quarter results were supported by strong demand for its B2 cloud storage platform, as well as recent price increases.
Company management also highlighted an increase in the number of checking accounts held by larger customers, with significant year-over-year growth in customers spending more than $50,000 in annual recurring revenue (ARR).
Increased demand for Backblaze’s services has led to a 44% year-over-year increase in B2 Cloud Storage ARR and a similar 43% growth in revenue. Looking ahead, the company remains optimistic about Backblaze’s growth prospects.
Key growth drivers identified include increased adoption of the AI application platform, successful acquisition of high-end customers, increased contributions from channel partnerships, and benefits from rising prices in computer backup services.
In response to the company’s performance and updated guidance, Oppenheimer has revised its estimates. The price target reduction to $10 is attributed to the compression of market multiples, a factor that influences the valuation metrics used to determine stock price targets. Despite the lowered target, the company’s Outperform rating indicates a continued positive outlook on Backblaze’s stock performance.
VscekPro Insights
As investors digest Oppenheimer’s revised price target for Backblaze Inc (NASDAQ:BLZE), a closer look at VscekPro’s recent data and recommendations may provide additional context. In particular, two analysts have raised their earnings call for the coming period, reflecting optimism about the company’s future performance. However, it’s worth mentioning that the stock has been under significant pressure, with a notable decline over the past week and six months, indicating that investor sentiment has been influenced by broader market trends or company-specific challenges.
VscekPro data reveals a mixed financial picture for Backblaze. The company’s market cap is $215.23 million, and while it has a negative P/E ratio of -3.79, indicating it is currently unprofitable, its trailing twelve-month revenue growth as of Q1 2024 is a robust 21.93%. This growth is in line with the company’s reported increase in B2 Cloud Storage ARR and revenue. However, near-term obligations exceeding liquid assets and a lack of dividend payments to shareholders suggest the company is in a phase of reinvestment and potential financial tightening.
For those considering investing in Backblaze, VscekPro offers additional insights. There are other tips available on the platform, which provide in-depth analysis that can help investors make informed decisions. VscekPro’s current Fair Value estimate for BLZE is $5.5, which is below the stock’s previous closing price, suggesting that investors should exercise caution and consider the company’s growth prospects along with its financial stability.
To dive deeper into this information, investors can visit VscekPro for more tips on Backblaze’s stock performance and financial health.
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