Klaviyo stock price target raised to $46 by TD Cowen on strong growth

Published 06/08/2025, 19:46
Klaviyo stock price target raised to $46 by TD Cowen on strong growth

Investing.com - TD Cowen raised its price target on Klaviyo Inc (NYSE:KVYO) to $46.00 from $45.00 on Wednesday, while maintaining a Buy rating following the company’s second-quarter results. According to InvestingPro data, analyst targets for Klaviyo range from $37 to $60, with the company maintaining strong financial health scores.

The marketing automation platform reported 32% revenue growth in the quarter, significantly exceeding Wall Street expectations of 26%. Management raised its fiscal year 2025 growth guidance to 27-28%, an increase of 200 basis points from previous forecasts. InvestingPro data shows the company maintaining impressive gross profit margins of 75.77% with trailing twelve-month revenue reaching $1 billion.

Klaviyo maintained a net revenue retention rate of 108% and achieved a record number of customers spending over $50,000. The company also reported a substantial quarter-over-quarter increase in total new customers, with particular strength in the entrepreneur segment.

TD Cowen noted that Klaviyo continues to show growth across its core initiatives including up-market expansion, SMS capabilities, and international markets, with no apparent headwinds from macroeconomic conditions or tariffs. The firm highlighted that customers view Klaviyo as a high-return investment tool for driving revenue.

New product offerings including WhatsApp/RCS channels, Marketing Analytics, and the Customer Hub beta have shown strong early adoption, supporting TD Cowen’s view of Klaviyo as a SMIDcap Top Pick with an attractive valuation at approximately 6.5x EV/CY26E Sales. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. Subscribers can access 8 additional ProTips and comprehensive valuation metrics in the Pro Research Report.

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, which exceeded predictions by 10.12%. This strong performance has led several analyst firms to adjust their outlooks for Klaviyo. Piper Sandler raised its price target to $55, citing the company’s largest earnings beat since its 2023 IPO and noting international growth of 42% year-over-year. Benchmark also increased its price target to $46, highlighting Klaviyo’s effective use of infrastructure leverage. Stifel raised its target to $42, acknowledging the company’s stronger-than-expected results and improved guidance. Meanwhile, Cantor Fitzgerald reiterated its Overweight rating and maintained a $48 price target, emphasizing the better-than-expected new customer additions and notable net additions of high-spending customers. These developments reflect growing confidence among analysts in Klaviyo’s strategic growth and financial performance.

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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