Morgan Stanley Upgrades Klaviyo (KVYO) to Buy, Keeps the PT

Klaviyo, Inc. (NYSE:KVYO) is one of the Most Promising New Technology Stocks to Buy According to Hedge Funds. On September 19, Elizabeth Porter from Morgan Stanley upgraded Klaviyo, Inc. (NYSE:KVYO) from Neutral to Buy with a price target of $50.

The analyst highlighted the company’s strategic focus from email marketing to a full CRM platform for B2C businesses. She notes that this strategic move opens a larger market opportunity for the company. Porter expects the company to grow revenue by over 20% annually for the next three years.

Moreover, Porter also emphasized that Klaviyo, Inc. (NYSE:KVYO) has a strong history of technological innovation. This means that it stands out in a software sector where high growth is rare. She believes the company’s current valuation is attractive. The enterprise value to sales ratio is about 6x, which she considers undervalued for a company considering its growth potential.

Klaviyo, Inc. (NYSE:KVYO) offers a customer relationship management platform designed for business-to-consumer brands.

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.