BLZE Stock On Track For Its Best Day Since March 2024 – ‘Game-Changing’ CoreWeave Deal Sparks Analyst Upgrades

• Citizens noted that the company’s $335 million deal with CoreWeave for multi-exabyte storage capacity validates Backblaze’s positioning in AI infrastructure.
• William Blair said that the CoreWeave agreement is ‘game-changing’ for Backblaze.
• Craig Hallum upgraded Backblaze's rating to ‘Buy’ from ‘Hold’ and increased Backblaze’s price target to $16 from $6.50.

Shares of Backblaze (BLZE) were on track for their best day since March 2024 in premarket trading on Wednesday after Citizens raised its price target on the stock, citing its deal with CoreWeave that validates the company’s AI infrastructure positioning.

On Tuesday, the stock gained over 43% in a single session, its best single-day gain since early May, and hit an intraday high of $11.85, a two-year high, before closing at $11.66. 

At the time of writing, BLZE stock was up 2.9% on Wednesday.

Citizens Point ‘Significant validation’ For Neocloud Storage

Citizens has raised its price target on Backblaze to $14 from $8 and kept an ‘Outperform’ rating on the stock, according to TheFly.

The firm noted that the company’s $335 million deal with CoreWeave for multi-exabyte storage capacity validates Backblaze’s AI infrastructure positioning for other neocloud providers evaluating third-party storage partners.

William Blair upgraded the stock to ‘Market Perform’ from ‘Underperform’ and said that the CoreWeave agreement is ‘game-changing’ for the company. This contract provides relief over the company’s prior concerns of AI defensibility and execution. 

Craig Hallum also upgraded the stock to ‘Buy’ from ‘Hold’ and increased Backblaze’s price target to $16 from $6.50. The firm said that the deal should drive ‘very material’ upward revisions to Backblaze’s 2027 estimates. It also highlighted that strength in Backblaze's core business, price increases with B2, and the CoreWeave neocloud deal ‘paint BLZE shares in a very different light.’

BLZE - CoreWeave Deal

A five-year, $335 million deal with CoreWeave has put Backblaze in the spotlight, where the company aims to provide cost-efficient storage capacity that supports portions of CoreWeave's managed storage infrastructure.

The Backblaze technology supports HDD-based storage tiers in CoreWeave AI Object Storage, the company noted.

What Retail Thinks Of BLZE

The retail chatter surround Backblze has shot up over 18900% in the past 24 hours. 

One user on Stocktwits said that Backblaze is testing highs after a deal with Coreweave that represents about 70% of the company’s total market capital.

https://stocktwits.com/PikaBullRun/message/657181233

On Stocktwits, retail sentiment surrounding the stock has improved to ‘extremely bullish’ from ‘bearish’ and  message volumes increased to ‘extremely high’ from ‘normal’ in the past 24 hours.

BLZE stock has gained over 145% so far this year.

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