Goldman Sachs has initiated or assumed coverage on several customer experience software companies, expressing a positive outlook on the sector as artificial intelligence continues to transform how businesses engage with customers. The investment bank assigned Buy ratings to Twilio, Braze, and Klaviyo, while maintaining a Neutral rating on Zeta Global, citing varying growth prospects and competitive advantages across the industry.
AI Reshaping the Customer Experience Landscape
According to Goldman Sachs analyst Callie Valenti, the rapid adoption of AI is creating significant opportunities for software providers that offer differentiated technology platforms and are well-positioned to capitalize on evolving enterprise needs.
The firm believes companies that combine strong infrastructure capabilities with innovative product development stand to gain market share as organizations rethink customer engagement strategies in an increasingly AI-driven environment.
Valenti noted that Goldman Sachs favors businesses that can benefit from structural changes brought about by AI, particularly those entering new product cycles and offering technology that can support next-generation customer experiences.
Twilio, Braze, and Klaviyo Receive Buy Ratings
Goldman Sachs set a price target of $300 for Twilio, $34 for Braze, and $26 for Klaviyo. Zeta Global received a price target of $28 alongside its Neutral rating.
Among the companies highlighted, Twilio was identified as a major beneficiary of AI-driven changes in customer service. Goldman believes the company is well-positioned to capture increasing demand for intelligent communication solutions and sees additional growth potential in the expanding voice technology market.
Braze and Klaviyo were singled out as particularly attractive opportunities. The bank argued that both companies have underperformed due to broader concerns surrounding AI’s impact on application software businesses. However, Goldman believes the market has overlooked the strength of their underlying technology infrastructure and their ability to leverage AI as a competitive advantage.
Strong Growth Potential Ahead
For Braze, Goldman projects a path toward operating margins of approximately 20% within the next three years as the company continues to improve efficiency and scale its operations.
Klaviyo, meanwhile, is expected to benefit from multiple growth drivers. Goldman highlighted opportunities to expand its customer service offerings while continuing to deepen its presence within the Shopify ecosystem. The bank believes there remains significant room for growth as merchants increasingly adopt integrated marketing and customer engagement solutions.
Why Goldman Remains Cautious on Zeta?
While Goldman sees value in Zeta Global’s business model, its Neutral rating reflects a more balanced risk-reward profile. The firm noted that mergers and acquisitions have played an important role in driving returns for Zeta, distinguishing it from peers that rely more heavily on organic growth initiatives.
Overall, Goldman Sachs views the customer experience software sector as a key beneficiary of the AI revolution, with select companies positioned to emerge as long-term winners as enterprises modernize customer engagement strategies.
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