Investing.com - Citizens JMP initiated coverage on Backblaze Inc (NASDAQ: BLZE ) with a Market Outperform rating and a $7.00 price target on Monday, citing the company’s position to benefit from artificial intelligence-driven data growth.
The research firm believes AI tailwinds are fueling data proliferation beyond traditional cloud computing, subsequently increasing demand for affordable cloud storage solutions like those offered by Backblaze.
Citizens JMP highlighted three factors supporting its positive outlook: a recent opportunity to reset investor sentiment and expectations, fiscal year 2025 guidance that appears achievable or beatable, and an attractive valuation compared to industry peers.
Backblaze stock closed at $5.11 on Monday, representing a decline of approximately 15% year to date, underperforming compared to the Russell 3000 index, which has gained about 2.2% during the same period.
The $7.00 price target set by Citizens JMP implies a potential upside of approximately 37% from Monday’s closing price for the cloud storage provider.
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