Braze net retention rate could further decline, says Loop Capital

Loop Capital analyst Yun Kim keeps a Buy rating and $75 price target on Braze after meeting its management at the company’s second Investor Day event. The conversation with Braze customers and partners validate the company’s undisputed market position as the leader in multi-channel customer engagement platform, especially its product strength and support for new, emerging communication channels, though the company expects its net retention rate to slow from 114% in Q2 to about 110% by Q4, and there could be further decline if the macro condition deteriorates, the analyst tells investors in a research note.