Blackbaud Price Target Increased to $79 by Baird Amid Positive Execution Progress

Baird has raised Blackbaud's (BLKB) price target from $73 to $79 and maintained a Neutral rating. The company's second-quarter performance showed positive progress in execution. Blackbaud's financial health is mixed, with steady revenue growth, but negative net margins and high debt levels. The company's business performance is driven by its strategic focus on the social good sector, but its valuation is a concern, with a high P/B ratio. Analysts recommend caution, with a consensus target price of $74.8.

Blackbaud (BLKB) has announced its second-quarter 2025 results, showcasing a significant improvement in growth and profitability since 2020. The company reported GAAP total revenue of $281.4 million, a decrease of 2.1% compared to the same period last year, primarily driven by the divestiture of EVERFI [1]. Despite this, non-GAAP organic revenue increased by 6.8%. GAAP recurring revenue was $275.6 million, down 2.0%, while non-GAAP organic recurring revenue grew by 6.9%. The company's operating margin improved by 540 basis points to 20.1%, and non-GAAP operating margin rose to 33.5%, up 350 basis points. Blackbaud's Rule of 40 score of 45.3% indicates strong performance, with non-GAAP adjusted EBITDA margin increasing by 280 basis points to 38.5% [1].

Blackbaud has raised its full-year 2025 financial guidance across all key metrics, reflecting its strong performance in the first half of the year. The company expects GAAP revenue to range from $1.120 billion to $1.130 billion, non-GAAP adjusted EBITDA margin to be between 35.4% and 36.2%, non-GAAP earnings per share to be $4.30 to $4.50, and non-GAAP adjusted free cash flow to be $190 million to $200 million [1].

Analysts at Baird have raised Blackbaud's price target from $73 to $79, maintaining a Neutral rating. The consensus target price among analysts is $74.8. While Blackbaud's second-quarter performance shows positive progress in execution, the company's financial health is mixed. Steady revenue growth is evident, but negative net margins and high debt levels are areas of concern. Blackbaud's strategic focus on the social good sector drives its business performance, but its valuation is a concern, with a high P/B ratio [1].

Blackbaud's recent highlights include welcoming Salesforce veteran Bill Fort as senior vice president of North America sales, showcasing its Intelligence for Good® AI strategy, and rolling out a strategic integration with Constant Contact. The company also released its 2024 Impact Report and was named one of Newsweek's World's Greenest Companies 2025 [1].

Blackbaud's stock repurchase program, which had approximately $545 million remaining as of June 30, 2025, supports shareholder value, and the company's forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 [1].

References:
[1] https://finance.yahoo.com/news/blackbaud-announces-2025-second-quarter-110000464.html