11:13 AM EDT, 08/28/2024 (MT Newswires) -- Braze (BRZE) could see upside to its fiscal Q2 expectations amid "stable" demand, deal activity and pipeline momentum, Oppenheimer said Wednesday.

The customer engagement platform is scheduled to report its fiscal Q2 results Sept. 5. Oppenheimer expects a pro forma loss of $0.03 per share, while revenue is expected to grow 22% year over year to $141 million.

"Our research mosaic around demand, deal activity, and pipeline momentum appeared stable for Braze's business in F2Q and suggests upside to estimates," Oppenheimer analysts, including Brian Schwartz, said in a note to clients. "However, the beat magnitude may moderate since the operating environment remains challenging for application suppliers, and for Braze."

The company is on track to generate mid-20% subscription revenue growth in fiscal 2025 and turn cash and operating profitable in fiscal Q4, according to the note.

Oppenheimer reiterated its outperform rating on the Braze stock, with a $60 price target.

The company's shares were down 2.1% in recent trading.

Price: 44.81, Change: -0.97, Percent Change: -2.12