Please ensure Javascript is enabled for purposes of website accessibility

Why BlackLine Stock Jumped 18.6% in January

By Keith Noonan - Feb 8, 2020 at 2:09AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Analysts warmed up to the accounting software company's prospects and helped the stock post double-digit gains.

What happened

Shares of BlackLine (BL 2.12%) rose 18.6% in January, according to data from S&P Global Market Intelligence. The stock got a significant boost following favorable coverage from analysts.

BL Chart

BL data by YCharts.

Oppenheimer analyst Brian Schwartz published a note on BlackLine on Jan. 13, upgrading his rating on the stock from perform to outperform and putting a $75 price target on it. The target price suggested roughly 22% upside at the time of the note's publication. BidaskClub also published a positive note on the stock, raising the rating on the company from buy to strong-buy on Jan. 18.

A person using a laptop and looking at a smartphone.

Image source: Getty Images.

So what

Schwartz wrote in the Oppenheimer note that he sees BlackLine's fundamentals improving thanks to better execution at the business. He also stated that he believed that competitive threats that had been tamping down on the company's valuation were overblown and that the stock would perform better relative to other software-as-a-service (SaaS) companies this year. The cloud-based accounting software company climbed roughly 25.9% in 2019, while the S&P 500 index rose nearly 29%.

Now what

BlackLine is scheduled to report fourth-quarter earnings results after the market closes on Feb. 13. The company is guiding for revenue between $77.3 million and $78.3 million -- good for growth of roughly 25.5% at the midpoint of the target -- and non-GAAP (adjusted) earnings per share between $0.12 and $0.13 based on 59.9 million diluted weighted average shares.

BlackLine stock trades at roughly 10 times forward sales and 120 times forward earnings.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

BlackLine, Inc. Stock Quote
BlackLine, Inc.
$68.01 (2.12%) $1.41

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.