Shares of Braze Inc ( BRZE ) have lost close to 40% year to date.

The company is well-positioned to capture market share in the customer engagement software segment, according to Stifel.

Analyst Parker Lane initiated coverage of Braze with a Buy rating and price target of $37.

The Braze Thesis: Consumer expectations shifting to more personalized brand experiences, an increase in digitally native consumers and gen AI-powered marketing are some of the trends that are favoring customer engagement providers, Lane said in the initiation note.

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"Compared to larger marketing platforms that have come together through acquisitions over the years and point-solution martech vendors that may have particular strengths and weaknesses in individual channels, Braze is viewed as a tightly integrated and extensive customer engagement platform," the analyst stated.

The company has built a "leading-edge multi-channel marketing platform that is difficult to replicate," he added.

Braze has incorporated some strategic changes this year, which should "materially lowered customer friction," Lane wrote. The company "remains in its early days of capturing its addressable market," he further said.

Price Action: Shares of Brazehad declined by 0.30% to $30.78 at the time of publication on Tuesday.

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