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Investing.com - Benchmark raised its price target on Klaviyo Inc (NYSE:KVYO) to $46.00 from $44.00 on Wednesday, while maintaining a Buy rating on the marketing automation company’s stock. Currently trading at $35.49 with a market cap of $8.47 billion, Klaviyo has received a strong Buy consensus from analysts, with targets ranging from $37 to $60. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The price target increase follows Klaviyo’s second-quarter results and outlook, which Benchmark described as delivering "the top to bottom goods" while clearing previous concerns about flat year-over-year operating margins. InvestingPro data reveals impressive gross profit margins of 75.77% and strong revenue growth of 33.95% over the last twelve months. For deeper insights into Klaviyo’s financial health and growth prospects, subscribers can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Klaviyo’s management confirmed it is now seeing leverage from infrastructure investments made over recent quarters, as evidenced by roughly flat gross margins quarter-over-quarter, compared to a 100 basis point decline in the same period last year. This performance was particularly notable given the company’s expansion of SMS capabilities into SMB and mid-market segments.
Benchmark has increased its 2025 operating margin forecast to 12.5% from 11.6% (representing a 50 basis point year-over-year improvement) and its 2026 estimate to 14.9% (a 100 basis point year-over-year gain).
While Klaviyo’s second-quarter revenue exceeded the high end of its guidance by 5%, the company raised its 2025 revenue guidance by only 2%, which Benchmark attributed to email profile enforcement measures implemented in February that are moderating some of the typical seasonal strength in the fourth quarter. The company maintains a "GOOD" overall financial health score according to InvestingPro analysis, with additional ProTips available to subscribers highlighting the company’s strong balance sheet and growth potential.
In other recent news, Klaviyo Inc. reported its second-quarter earnings for 2025, surpassing Wall Street expectations with an earnings per share of $0.16, compared to the forecasted $0.13. The company achieved revenue of $293 million, exceeding predictions by 10.12%. This strong financial performance was accompanied by a 32% revenue growth, surpassing consensus estimates by $14 million. Klaviyo also noted better-than-expected new customer additions and its best-ever net additions of customers spending over $50,000. In response to these results, Stifel raised its price target for Klaviyo to $42 from $40, maintaining a Buy rating. Additionally, Cantor Fitzgerald reiterated an Overweight rating and a $48 price target on the stock. These developments reflect investor confidence in Klaviyo’s strategic growth initiatives and robust performance.
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