DA Davidson reiterates Buy rating on Blaize stock with $10 price target

Blaize Inc. (NASDAQ:BZAI) has secured significant new contracts, including a $120 million hybrid AI deployment in APAC, a $56 million smart city project, and a $104 million Gulf State defense deal, prompting a substantial upward revision of its revenue guidance. The company now projects FY2025 revenue of at least $35 million and FY2026 revenue of at least $130 million, which underpins DA Davidson's reiterated Buy rating and $10 price target, signaling strong growth momentum and increasing market penetration for its AI technologies.

Analysis

Blaize Inc. (BZAI) is demonstrating significant commercial momentum, underscored by a series of major contract announcements that have prompted a substantial upward revision of its financial guidance. The company has secured a $120 million hybrid AI deployment contract in the APAC region, a $56 million smart city deal in Southeast Asia, and a collaboration with Starshine Computing valued at a minimum of $120 million over 18 months. These agreements have led management to raise fiscal year 2025 revenue guidance to at least $35 million, a significant increase from the previous range floor of $19 million, and to introduce a fiscal year 2026 forecast of at least $130 million in revenue. This projected revenue ramp-up supports DA Davidson's reiterated "Buy" rating and $10.00 price target, which implies considerable upside from its current price of $4.31. The developments signal a transition for Blaize from a development-focused entity to a company with a tangible and rapidly expanding revenue stream in high-growth AI applications for defense and smart infrastructure.

Key Decisions for Investors

• Given the secured, multi-year contracts and sharply increased revenue guidance for FY25 and FY26, investors may view the stock as having a strong growth catalyst, especially with its current price trading significantly below the $10 analyst target.
• Investors should closely monitor the company's execution on these large contracts, as the ability to successfully deploy and recognize revenue is critical to achieving the aggressive $130 million revenue target for FY26.
• The wide range in analyst price targets, from $3 to $10, suggests that while the long-term potential is high, there is uncertainty regarding execution, warranting careful position sizing and attention to future earnings reports for confirmation of the growth trajectory.