Bank of America just raised its EUR/USD forecast
On Thursday, KeyBanc Capital Markets revised its price target for Klaviyo Inc (NYSE:KVYO) shares, raising it to $55 from the previous $45, while maintaining an Overweight rating. According to InvestingPro data, Klaviyo has demonstrated impressive momentum with a 48.55% return over the past six months, trading near $47. The firm’s analyst Jackson Ader cited a strong end to the previous year and anticipated continued robust performance in 2025, driven by enterprise strength and stabilization at the lower end of the market.
Ader noted that Klaviyo’s recent quarter was boosted by contracting changes implemented in April of the previous year. The company maintains strong fundamentals with a remarkable 77.61% gross profit margin and 35.41% revenue growth over the last twelve months. However, he pointed out that the majority of the mid-single-digit benefit from these changes had already been factored into the company’s guidance. Klaviyo has adjusted its pricing strategy to focus on active profiles rather than message recipients, a move that is expected to result in a pricing uplift, capped at 25%, for a subset of customers. This pricing adjustment has led to some customer churn, which the analyst acknowledged as a potential concern.
Despite these challenges, KeyBanc remains optimistic about Klaviyo’s growth trajectory. The company is positioned as a premium growth asset within its sector, with several tailwinds supporting its continued success. These include international expansion, strategic partnerships, new product introductions, wins among enterprise customers, improvements in the small and medium-sized business (SMB) macro environment, and a potential increase in demand for front-office software within IT and marketing budgets.
Looking forward, KeyBanc’s positive outlook for Klaviyo is underpinned by expectations of revenue growth throughout the year, which may lead to an expansion of the company’s market multiple. The firm’s updated price target reflects this confidence and the belief that Klaviyo is well-placed to sustain its premium growth status in the competitive landscape. InvestingPro analysis reveals 14 additional key insights about Klaviyo’s financial health and market position, available through the comprehensive Pro Research Report.
In other recent news, Klaviyo Inc. reported a robust fourth-quarter performance with a 34% year-over-year revenue increase, surpassing expectations. This strong result prompted several analyst firms to raise their price targets for Klaviyo. Loop Capital Markets increased its target to $60, while Piper Sandler raised it to $53, Mizuho (NYSE:MFG) Securities to $52, and Canaccord Genuity to $50, all maintaining positive ratings on the stock. The company’s international expansion and mid-market growth were highlighted as key contributors to its financial success. Klaviyo’s recent launch of a new CRM platform tailored for B2C brands marks a significant expansion of its product offerings. This platform integrates marketing, service, and analytics to enhance customer engagement and drive revenue. Analysts have noted Klaviyo’s disciplined growth strategy and potential for continued success in its vast and largely untapped market. The company’s guidance for fiscal year 2025 projects revenue growth of 23-24%, with management expressing cautious optimism about future prospects.
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