Investing.com -- Bank of America upgraded Blackline Inc (NASDAQ:BL) to "Buy" from "Underperform" given improving fundamentals and a well-positioned business strategy that could drive revenue growth. The brokerage also raised its price target to $75 from $50.
BlackLine, an accounting automation software provider, introduced a new pricing and packaging strategy alongside its next-generation platform, Studio360, at its October BeyondTheBlack event. BofA said these initiatives could boost platform usage and monetization, supporting a revenue reacceleration.
BofA noted BlackLine’s management overhaul and strategic shifts over the past two years, stating that the company is now set for its next growth phase. BofA raised its 2025 revenue forecast to $712.8 million, above the $710.5 million consensus, and increased its free cash flow estimate by 12.2% to $175.4 million.
With BlackLine’s preannounced fourth-quarter results reducing downside risks, BofA expects "beat-and-raise" quarters ahead. The new price target values BlackLine at 8.2 times its estimated 2025 revenue, a premium to small-cap software peers, reflecting confidence in the company’s execution.
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