KeyBanc maintains $50 target on Klaviyo stock, keeps Overweight

On Wednesday, KeyBanc Capital Markets maintained its Overweight rating and $50.00 price target on Klaviyo Inc (NYSE:KVYO), currently trading at $31.60 with a market capitalization of $8.63 billion. The firm’s analyst, Jackson Ader, highlighted Klaviyo’s performance amidst a turbulent market, noting the significant drop in share price since the recent peak on NASDAQ. According to InvestingPro data, the stock has shown resilience with a strong return over the last month despite recent volatility. Ader pointed out that Klaviyo, a company with a strong presence in the small and medium-sized business (SMB) sector as well as in consumer and retail, has experienced a steep decline in its stock value, which has halved in just a few weeks.

Ader emphasized that the skepticism towards Klaviyo is already reflected in its current valuation, with the company’s revenue multiple being considerably lower than that of its growth-adjusted peers. InvestingPro analysis reveals impressive gross profit margins of 76.39% and a healthy current ratio of 4.9, indicating strong operational efficiency and solid financial health. Despite the market’s concerns, which are largely due to the company’s exposure to sectors vulnerable to economic shifts and its customer base that includes sellers of imported goods, Klaviyo has distinguished itself by increasing its full-year revenue forecast.

The company has adjusted its revenue expectations upward for the remainder of the year, which is a deviation from the norm observed in the industry. This optimism is supported by Klaviyo’s robust revenue growth of 34.29% over the last twelve months, as reported by InvestingPro. According to Ader, if it were not for the lack of a formal announcement, Klaviyo’s guidance could have been set even higher. This optimistic adjustment in revenue outlook reinforces KeyBanc’s decision to reiterate its Overweight rating and price target for Klaviyo.

In his commentary, Ader explained that the market has priced in a significant level of skepticism or an expectation for a downturn in Klaviyo’s fundamentals. However, the company’s proactive move to raise its revenue expectations for the next nine months stands out as a positive indicator in a market where such upward revisions are not commonplace. The firm’s stance on Klaviyo remains unchanged, with a continued recommendation for the Overweight rating and a price target of $50.00. For deeper insights into Klaviyo’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which includes detailed analysis of over 10 key financial metrics and growth indicators.

In other recent news, Klaviyo Inc. reported its first-quarter 2025 earnings, revealing a revenue of $280 million, surpassing the expected $257.25 million. The earnings per share (EPS) met forecasts at $0.14. Klaviyo’s revenue exceeded forecasts by $22.55 million, showcasing a 33% year-over-year increase. The company expanded its customer base by 16% to over 169,000 customers, with a 40% growth in customers generating over $50,000 in annual recurring revenue. Klaviyo’s strategic focus on mid-market and enterprise acquisition, along with international expansion, contributed significantly to its strong performance. The company maintains its full-year 2025 revenue guidance at $1.171 billion to $1.179 billion, aiming for a 25-26% increase from the previous year. Klaviyo plans to continue its focus on AI enhancements, international market expansion, and new product development. These recent developments highlight Klaviyo’s robust performance and strategic initiatives in the current market landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.