12:12 PM EDT, 03/21/2024 (MT Newswires) -- Braze (BRZE) is likely to see "upper-echelon growth" in fiscal Q4, among Software as a service companies, Oppenheimer said in a note Thursday.

"Braze is navigating a challenging operating environment well and has structural advantages that should enable it to sustain 25%+ revenue growth and margin expansion as it gains share of increasing marketing IT budgets," Oppenheimer said.

Braze is set to announce its Q4 results on Wednesday, its total revenue is estimated to be roughly $125 million marking a 26% year-over-year increase. Research suggests demand and pipeline momentum are slightly positive, indicating a potential upside to estimates, Oppenheimer said.

"In our view, the operating environment looks stable in 2024, and investor expectations appear low with shares trading at a discount to the peer group," Oppenheimer said. However, there is a less optimistic outlook, with revenue growth and net revenue retention showing signs of slowing down, it added.

Oppenheimer reiterated its outperform rating on Braze with a price target of $75.

Shares of the company were up 4.3% in recent trading.

Price: 54.91, Change: +2.29, Percent Change: +4.34