10 Software Stocks Analysts Are Upgrading

9. Klaviyo, Inc. (NYSE:KVYO)

Number of Hedge Fund Holders: 36

Klaviyo, Inc. (NYSE:KVYO) is one of the 10 software stocks analysts are upgrading. On June 13, Wells Fargo upgraded the company’s shares to “Overweight” from “Equal Weight,” while raising the price objective to $40 from the prior target of $32. The firm has meaningfully shifted its view on Klaviyo, Inc. (NYSE:KVYO)’s shares, as it believes that several concerns have been addressed.

Klaviyo, Inc. (NYSE:KVYO) is in the early stages of unlocking international markets, with growth stable at 45% over the previous 4 quarters, and has a strategic emphasis on capturing more e-commerce wallet share given its entry into the service. These factors, together with the improvement in competitive positioning, have led the firm to believe that Klaviyo, Inc. (NYSE:KVYO) has a favorable path ahead for durable and outsized growth.

Klaviyo, Inc. (NYSE:KVYO) ended Q1 2025 with 3,030 customers garnering more than $50,000 of ARR as compared to 2,157 at Q1 2024 end, reflecting an increase of 40% YoY. The company added that more than 169,000 customers use Klaviyo to fuel their revenue growth as of March 31, 2025, compared to more than 146,000 customers as of March 31, 2024. Sands Capital, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Klaviyo, Inc. (NYSE:KVYO) is an innovative provider of business-to-consumer (B2C) marketing technology. The business reported a strong 2024 fourth quarter result, with key metrics exceeding both consensus and our expectations. While shares declined—due to high pre-earnings expectations, a slightly softer guide, and the broader tech selloff—we view the business as executing well. Management continues to improve communication and operational delivery, with strong momentum across upmarket adoption, international expansion, and product innovation. The standout announcement was the launch of a full CRM platform that integrates marketing, customer service, and analytics. This shift positions Klaviyo as a true platform business for B2C brands, in our view, and expands its AI opportunity.”