Klaviyo Inc. (NYSE:KVYO) is one of the best software application stocks to buy according to Hedge Funds.
On January 15, Elizabeth Porter from Morgan Stanley maintained an Overweight rating on Klaviyo Inc. (NYSE:KVYO). She revised her estimated target price from $46 to $42.
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Porter believes that SaaS application companies delivered lower returns in 2025 relative to the technology sector and the broader software group. This was due to continued fears of AI-related risks for such businesses. However, she feels that these risk assessments seemed to have been exaggerated initially, and there is more optimism around SaaS companies going into 2026. Despite a downward revision of the target price, Porter’s estimates still yield an impressive 64% upside for the stock.
On January 12, Cantor Fitzgerald also maintained an Overweight rating for Klaviyo Inc. (NYSE:KVYO), with a $40 price target. The firm negated speculations around the “AI taking over the Software World thesis.” The firm noticed a critical factor that offers resilience to software solution providers in general. It sees enterprises being reluctant to move away from existing software platforms, given the complexity of their processes and workflows.
The firm also expressed confidence in the company’s market position following the launch of Marketing Agent and Customer Agent products. These developments will push topline figures beyond the $1 billion mark.
Klaviyo Inc. (NYSE:KVYO) delivers an AI-first SaaS platform for B2C clients that helps in their customer relationship management functions. The platform enables data storage, campaigns, marketing automation, and analytics. It also allows for customer service integration and omni-channel marketing tools such as emails, SMS, and WhatsApp marketing.
While we acknowledge the potential of KVYO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
