A look at Blackbaud’s (BLKB) valuation following its new Anthropic AI partnership and ‘Agents for Good’ launch
Blackbaud (BLKB) just gave investors a lot to chew on, pairing a strategic AI partnership with Anthropic and its new Agents for Good with a bigger buyback authorization, all aimed squarely at long term growth.
See our latest analysis for Blackbaud.
That backdrop helps explain why the 7 day share price return of 12.97 percent and 30 day share price return of 11.04 percent stand in contrast to a weaker year to date share price return of 13.61 percent and a 1 year total shareholder return of 20.32 percent, suggesting fresh enthusiasm around Blackbaud’s AI roadmap even after a choppier stretch.
If the Anthropic partnership has you rethinking where software and data advantages really matter, it could be worth scouting other high growth tech and AI names through high growth tech and AI stocks to see what else fits your watchlist.
With shares still trading at a discount to both analyst targets and intrinsic value despite accelerating AI innovation, is Blackbaud quietly undervalued here, or is the market already baking in the next leg of growth?
Most Popular Narrative Narrative: 14.5% Undervalued
With Blackbaud last closing at $63.69 against a narrative fair value of $74.50, the story leans toward upside, hinging on earnings power and margin expansion.
The shift toward cloud based SaaS subscription models and improvements in operational efficiency, including automation and AI driven internal initiatives, are lowering costs and improving gross and net margins. This is providing significant leverage to long term earnings growth. Heightened importance of data security and compliance is prompting organizations to seek robust, purpose built solutions, setting Blackbaud apart from legacy or less sophisticated providers. This is expected to boost customer retention, win rates, and recurring revenue predictability.
Want to see what kind of profit turnaround and margin reset could support this higher valuation, and what future earnings multiple it quietly bakes in? Read on.
Result: Fair Value of $74.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, that upside hinges on execution, as slower organic growth and intensifying competition in cloud native fundraising tools could quickly erode the bullish case.
Find out about the key risks to this Blackbaud narrative.
Build Your Own Blackbaud Narrative
If you see the setup differently or want to pressure test the assumptions with your own numbers, you can build a custom view in minutes: Do it your way.
A great starting point for your Blackbaud research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
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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.
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