15 Software Stocks With the Highest Upside Potential

10. Commvault Systems, Inc. (NASDAQ:CVLT)

Potential Upside: 52.87%

Number of Hedge Fund Holders: 29

On January 12, KeyBanc cut its price target on Commvault Systems, Inc. (NASDAQ:CVLT) from $185 to $152. However, KeyBanc analyst Eric Heath maintained a Buy rating for the shares. The adjusted price target offers a further 22.5% upside from the current levels.

The firm explained that the price target revision reflects a modest decline in valuation multiples across competitors, rising competitive concerns, and increased caution regarding security-related spending budgets.

In contrast to KeyBanc, RBC Capital maintained its price target of $167 for the shares on January 5. Analyst Dan Bergstrom also reaffirmed a Buy rating on the shares. The firm’s price target implies a further 31.31% upside from the current levels.

On December 29, Stephens started covering the stock with a Buy rating. The analyst Todd Weller, CFA, assigned a price target of $162 to the shares, representing a further 30.6% upside from current levels. As per the analyst, the company is a well-established market leader that is successfully adapting to meet modern data protection needs. Moreover, the firm noted that the company is undergoing a dual transformation, transitioning its business model toward a Software-as-a-Service offering and modernizing its platform.

Commvault Systems, Inc. (NASDAQ:CVLT) is a cyber-resilience platform provider that protects and recovers data and cloud-native applications across the Americas and internationally. It was founded in 1996 and is based in Tinton Falls, New Jersey.