Piper Sandler raises Klaviyo stock price target to $55 on strong Q2 results

Published 06/08/2025, 19:24
Piper Sandler raises Klaviyo stock price target to $55 on strong Q2 results

Investing.com - Piper Sandler raised its price target on Klaviyo Inc (NYSE:KVYO) to $55.00 from $40.00 on Wednesday, while maintaining an Overweight rating on the stock. According to InvestingPro data, analyst targets for the company range from $37 to $60, with the stock currently trading above its calculated Fair Value.

The research firm cited Klaviyo’s strong second-quarter results, which showed overall growth of 32% year-over-year, marking the company’s largest earnings beat since its 2023 IPO. The company maintains impressive gross profit margins of 75.77% and has achieved revenue growth of 33.95% over the last twelve months. International growth was particularly robust at 42% year-over-year, despite macroeconomic and tariff uncertainties.

Piper Sandler noted that Klaviyo’s customer base of over 176,000 has demonstrated resilience, with some customers increasing spending on the platform during challenging economic periods. Average revenue per customer for $50K+ customers accelerated to 14% year-over-year, compared to 10% in the previous period. InvestingPro analysis reveals the company maintains a strong financial position with a current ratio of 5.22, indicating robust liquidity. Get access to 8 more key ProTips and comprehensive analysis with an InvestingPro subscription.

The firm highlighted Klaviyo’s real-time database with first-party retail customer data as providing a competitive advantage for AI-ready platforms. This advantage positions the company well for future growth opportunities, supported by its overall GOOD financial health score according to InvestingPro metrics.

Piper Sandler raised its 2026 growth estimates for Klaviyo to 22% from 18% previously, citing increased confidence in the company’s multiproduct cross-sell potential that could reaccelerate growth in the second half of 2026 and into 2027. The company, currently valued at $8.47 billion, is expected to maintain its strong growth trajectory, with analysts forecasting profitability this year.

In other recent news, Klaviyo Inc. reported its second-quarter earnings for 2025, exceeding Wall Street expectations. The company achieved an earnings per share of $0.16, surpassing the forecast of $0.13, and reported revenue of $293 million, which was 10.12% above predictions. Klaviyo also demonstrated impressive revenue growth of 32%, outperforming consensus estimates by $14 million, as noted by Cantor Fitzgerald, which reiterated an Overweight rating with a $48 price target. The company saw significant new customer additions, marking its best-ever net additions of customers spending over $50,000.

Following these results, Benchmark raised its price target for Klaviyo to $46, highlighting the company’s strong performance and addressing previous concerns about flat operating margins. Stifel also increased its price target to $42, citing stronger-than-expected results and improved guidance. These developments reflect growing confidence among analysts in Klaviyo’s strategic growth and infrastructure leverage.

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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