Benchmark reiterates Buy rating on Klaviyo stock ahead of Q2 earnings

Published 28/07/2025, 14:30
Benchmark reiterates Buy rating on Klaviyo stock ahead of Q2 earnings
Investing.com - Benchmark maintained its Buy rating and $44.00 price target on Klaviyo Inc (NYSE:KVYO) ahead of the company’s second-quarter earnings report scheduled for August 5, after market close. Currently trading at $33.04, the company has attracted varied analyst targets ranging from $37 to $60, with InvestingPro data showing the stock trading near its Fair Value despite a 28% decline over the past six months.The research firm cited "deliberate conservatism" in Klaviyo’s second-quarter revenue guidance, which projects approximately flat quarter-over-quarter growth at the high end of the range. While Benchmark noted conservative 2025 estimates, InvestingPro analysis reveals impressive fundamentals, including a robust 75.77% gross profit margin and strong 33.95% revenue growth over the last twelve months. Get access to 10+ additional exclusive ProTips and comprehensive financial metrics with InvestingPro’s detailed research report.Benchmark views the company’s upcoming September 25 investor day as a positive indicator that its Business-to-Consumer CRM platform, launched in February, is gaining traction. This progress could serve as a proxy for Enterprise adoption and incremental Annual Recurring Revenue growth, supported by the company’s solid financial health with a current ratio of 5.22 and more cash than debt on its balance sheet.The firm highlighted the significant contrast between Klaviyo’s top 10 customer Average Revenue Per Subscriber (ARPS) of $1.5 million in the first quarter of 2024 and its total ARPS of $6,000 in the first quarter of 2025, demonstrating the company’s evolution from an email "outsourcer" to a "full-stack, data-driven growth partner."Benchmark indicated it will be watching for signs of midmarket and Enterprise growth in the near-to-medium term during the upcoming earnings call.In other recent news, Klaviyo Inc. has been in the spotlight due to several key developments. Cantor Fitzgerald has initiated coverage on Klaviyo with an Overweight rating and set a price target of $48, based on a valuation of 9.7 times their 2026 revenue estimate. This comes as the company maintains a growth rate exceeding 20% in topline revenue. Meanwhile, Stifel has lowered its price target for Klaviyo to $40 from $45, though it maintains a Buy rating on the stock. Additionally, Klaviyo has launched a public beta of its AI-powered shopping assistant, designed to provide personalized customer support and compete with major retail giants.In another significant move, Klaviyo’s CEO Andrew Bialecki has initiated a $372 million stock sale to cover tax obligations related to expiring stock options. The offering’s completion is contingent on market conditions, and Klaviyo will not receive any financial benefit from this sale. These developments highlight ongoing changes and strategic initiatives within the company.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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