BlackLine placed on ‘positive catalyst watch’ into earnings at Citi

Citi placed a “90-day positive catalyst watch” on BlackLine (BL) into earnings and keeps a Buy rating on the shares with a $73 price target The firm believes investor sentiment on BlackLine is “overly negative” with concerns of a potential guide down for 2025 versus consensus. However, Citi believes the company’s fundamentals have improved in Q4, driven by an expanded relationship with SAP, new products rolling out to support growth, and recent go-to-market changes that should help improve retention in 2025. It sees the upcoming Q4 earnings as supporting its view with limited risk as the company has already preannounced positively.