Key Takeaways
- Goldman Sachs initiated coverage on three software firms—Twilio (TWLO), Braze, and Klaviyo—assigning Buy ratings to each.
- The investment bank set a $300 price target for Twilio, representing approximately 63% upside potential.
- Braze earned a $34 price target from Goldman, indicating around 62% upside from current trading levels.
- Klaviyo received a $26 price target, the most aggressive projection with roughly 93% upside potential.
- The firm believes each company stands to capitalize on accelerating enterprise adoption of AI technologies.
Goldman Sachs has initiated research coverage on three software providers the firm believes are strategically positioned to thrive during the artificial intelligence transformation. The investment bank assigned Buy recommendations to Twilio, Braze, and Klaviyo. Analyst Callie Valenti outlined distinct investment theses for each company.
The trio operates in complementary but distinct segments of enterprise software. Twilio specializes in customer communication infrastructure. Braze provides cross-channel marketing engagement platforms. Klaviyo delivers customer data and marketing automation specifically for e-commerce businesses.
Twilio Commands The Highest Target Price
Goldman Sachs assigned Twilio a $300 price target. This valuation suggests potential gains of roughly 63% from current trading prices.
Twilio develops cloud-based infrastructure that enables enterprises to communicate with customers across text messaging, voice calls, and additional channels. Goldman emphasized that as AI agents proliferate, the organizations deploying these agents require reliable communication infrastructure to connect with end users.
The firm spotlighted Twilio’s Voice segment, which expanded 20% year-over-year during Q1. The self-service division delivered 28% growth in Q4 2025. Goldman also observed that half of the companies featured on Forbes’ AI 50 list were using Twilio’s platform as of September 2024.
Twilio delivered exceptional growth alongside expanding profit margins in its Q1 2026 financial release. Management characterized the company’s transformation into a comprehensive platform designed specifically for AI-powered customer interactions.
Braze And Klaviyo Complete Goldman’s Trio
Braze earned a $34 price target from Goldman Sachs, suggesting approximately 62% upside opportunity. The investment bank noted that Braze continues capturing market share from legacy marketing technology providers as enterprises modernize their tech stacks.
Goldman projects Braze will achieve 20% operating margin levels by 2029. The firm credited more adaptable pricing structures and an expanding product portfolio as drivers behind this profitability trajectory.
Braze recently reported quarterly financial results that exceeded revenue projections. Management increased full-year guidance following the company’s fourth consecutive quarter of accelerating revenue growth.
Klaviyo received the most optimistic projection among the three stocks, with a $26 price target implying about 93% potential appreciation. The shares have declined approximately 30% following first-quarter earnings, pressured by the CFO’s departure announcement and mixed quarterly performance.
Goldman argued these near-term headwinds don’t accurately represent the company’s fundamental business momentum. The firm highlighted that Klaviyo continues posting revenue growth in the upper 20% range.
Goldman characterized Klaviyo’s deep integration with Shopify as a competitive advantage rather than solely a concentration risk. The firm anticipates Klaviyo will maintain momentum within that partnership while simultaneously penetrating enterprise accounts and geographic markets beyond North America.
Klaviyo’s Q1 2026 financial performance exceeded Wall Street estimates for both top-line and bottom-line metrics. Management subsequently elevated guidance for the upcoming quarter based on sustained business strength.
Goldman advised investors to monitor the sustainability of AI-related demand across these three companies moving forward. The firm also identified gross profit dollar growth and margin progression as critical metrics to evaluate in subsequent reporting periods.
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