Benchmark raises Klaviyo stock price target to $165, maintains Buy

On Monday, Benchmark analyst raised the price target on Klaviyo Inc (NYSE:KVYO) to $165 from the previous $135, while keeping a Buy rating on the stock. Currently trading at $32.62, the company has shown a strong 8.1% return over the past week, according to InvestingPro data. The adjustment comes ahead of Klaviyo’s first-quarter earnings report, which is scheduled for release after the market closes on Tuesday.

The analyst anticipates Klaviyo’s first-quarter revenue and adjusted EBITDA to align with the higher end of the company’s guidance. With impressive gross profit margins of 76.39% and revenue growth of 34.29% in the last twelve months, Klaviyo has demonstrated strong fundamental performance. However, due to prevailing macroeconomic uncertainties, Benchmark has adjusted its 2025 total revenue estimate for Klaviyo to the lower end of the company’s guidance, reflecting a more conservative outlook about the incremental revenue from new products.

In the upcoming earnings call, the analyst expects Klaviyo to provide insights into several areas. These include the growth of mid-market customers and average revenue per user (ARR), the impact of new products like AI-powered Analytics and Customer Service on revenue, strategies to improve operating margins, and the stabilization of net revenue retention in the face of economic uncertainties. Additionally, Klaviyo’s recent public beta launch of its B2C CRM for Shopify (NASDAQ:SHOP) users in February is also anticipated to be a topic of interest.

Benchmark predicts that Klaviyo will report that approximately 37% of its total annual recurring revenue (ARR) comes from mid-market clients, showing potential for revenue growth. The analyst also notes that Klaviyo’s top ten customers each contribute an average ARR of about $2.4 million, indicating significant adoption among larger enterprise workloads.

Despite the macroeconomic challenges, Benchmark sees a potential for substantial leverage in 2026 as new product investments and system integrator partnerships are expected to scale. With an overall Financial Health score rated as "GOOD" by InvestingPro, and a market capitalization of approximately $9 billion, the analyst believes that Klaviyo’s data advantages and strong return on ad spend (ROAS) position it well for growth, particularly in the enterprise segment, which could complement its mid-market momentum. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with 11 additional ProTips available to subscribers.

In conclusion, Benchmark reiterates its Buy rating on Klaviyo stock, while adjusting the price target to reflect the revised estimates and an increased weighted average cost of capital (WACC).

In other recent news, Klaviyo Inc has been the subject of several analyst updates, reflecting its recent financial performance and strategic direction. Stifel analysts raised their price target for Klaviyo to $54.00, citing the company’s largest revenue beat of the year and a strong fourth-quarter performance, including increased net customer additions and revenue growth in the EMEA region. Similarly, Cantor Fitzgerald increased their price target to $54.00, maintaining an Overweight rating, highlighting Klaviyo’s ability to meet market expectations and its favorable risk/reward balance.

Benchmark analysts also raised their price target to $54.00, acknowledging the company’s solid fourth-quarter performance and successful up-market growth initiatives. Klaviyo’s Annual Recurring Revenue from high-value customers grew by 46% year-over-year, and the Net Revenue Retention rate showed signs of stabilization. Meanwhile, Needham analysts maintained a Buy rating with a price target of $56.00, impressed by Klaviyo’s strategic emphasis on developing a CRM system tailored for B2C interactions.

Truist Securities, however, adjusted their price target for Klaviyo to $40.00 from $55.00, maintaining a Buy rating. Despite the reduction, Truist remains confident in Klaviyo’s potential for significant top-line growth, supported by strategic investments in key business drivers. Across these updates, Klaviyo’s strategic initiatives and growth potential have been underscored, reflecting a positive outlook from multiple analyst firms.

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