15 Software Stocks With the Highest Upside Potential

11. Braze, Inc. (NASDAQ:BRZE)

Potential Upside: 49.65%

Number of Hedge Fund Holders: 34

On January 5, the company was added to Wells Fargo’s Q1 2026 Tactical Ideas List. Wells Fargo analyst Ryan MacWilliams pointed to expected momentum into early 2026 supported by  a favorable mobile app development environment, potential fourth-quarter growth acceleration, and tailwinds from consumer AI use cases. The firm reaffirmed its Overweight rating and $45 price target for the shares.

Additionally, Scott Berg of Needham also reiterated a Buy rating on the stock on December 31. He also maintained the price target of $50 for the shares. The rating was based on the company’s strong competitive position and attractive growth outlook into CY26 and beyond. He named Braze as his top pick for 2026, citing a favorable environment for marketing and customer engagement software as enterprises begin to reallocate budgets toward GenAI-enabled engagement tools. He believes that the company’s largely consumer-focused customer base is well positioned to rapidly adopt and benefit from these new AI-driven capabilities, driving increased demand for its platform.

Berg also highlighted Braze’s operating performance as evidence of a durable growth profile not fully reflected in consensus forecasts. Trailing 12-month dollar-based net retention remains solid, running in the high single-digits above 100%. Based on this stability, Berg expects the company to reaccelerate to revenue growth above 20% in FY27.

Braze, Inc. (NASDAQ:BRZE) operates a customer engagement platform. The company’s platform offers interactions between consumers and brands globally. It was founded in 2011 and is based in New York, New York.