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    Are AI-Native Rivals Quietly Rewriting Braze’s (BRZE) Competitive Moat?

    Simply Wall St·02/18/2026 00:38:54
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    • Earlier in February 2026, analysts at Stifel and Piper Sandler reiterated positive views on Braze while cautioning that recent advances by AI-native competitors and model providers are intensifying concerns about the durability of its growth profile.
    • Despite these concerns, both firms highlighted Braze’s strong revenue and billings expansion and argued that its customer engagement platform and AI capabilities could give it a defensible edge versus other software providers facing disruption.
    • We’ll now examine how this renewed focus on AI competition and Braze’s perceived moat could reshape the company’s existing investment narrative.

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    Braze Investment Narrative Recap

    To own Braze, you need to believe its customer engagement platform and AI investments, including OfferFit and Project Catalyst, can stay differentiated as AI-native competitors multiply. The latest Stifel and Piper Sandler updates sharpen that debate but do not fundamentally change the near term picture, where a key catalyst is OfferFit integration and a key risk is that rising AI competition could compress pricing and slow growth if Braze’s moat proves weaker than expected.

    The most relevant announcement here is Stifel’s February 9 decision to cut its price objective to US$40 while still highlighting Braze’s “overlooked moat” and potential as an AI winner. That view leans heavily on Braze’s recent revenue growth of 25.6% and billings growth of 22.4%, tying the upside case to the idea that its AI driven personalization can keep attracting larger, multi channel deals even as newer AI model providers pressure traditional SaaS economics.

    Yet beneath that optimism, you should also be aware of how intensifying AI competition could erode pricing power and margins if Braze’s differentiation starts to...

    Read the full narrative on Braze (it's free!)

    Braze's narrative projects $1.0 billion revenue and $133.0 million earnings by 2028. This requires 17.9% yearly revenue growth and about a $237 million earnings increase from -$103.9 million today.

    Uncover how Braze's forecasts yield a $46.70 fair value, a 176% upside to its current price.

    Exploring Other Perspectives

    BRZE 1-Year Stock Price Chart
    BRZE 1-Year Stock Price Chart

    Some of the lowest ranked analysts take a much tougher view than consensus, even while assuming revenue could reach about US$1.0 billion by 2028, warning that rising AI driven commoditization and pricing pressure might keep Braze unprofitable and leave far less room for error than the more optimistic narratives suggest.

    Explore 5 other fair value estimates on Braze - why the stock might be a potential multi-bagger!

    Decide For Yourself

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.