Bank of America just raised its EUR/USD forecast
On Thursday, Truist Securities expressed a positive outlook on Klaviyo Inc (NYSE: NYSE:KVYO), raising its price target on the company’s shares to $55.00 from $42.00. Currently trading at $47, the stock sits within the broader analyst target range of $36-$60. The firm retained a Buy rating on the stock, emphasizing the company’s robust performance in the fourth quarter of 2024. According to InvestingPro data, the company has demonstrated impressive growth with revenue increasing by 35.41% in the last twelve months.
Terry Tillman, an analyst at Truist Securities, noted that Klaviyo finished the fourth quarter with strong results, showing upside in revenue, non-GAAP EBIT, and free cash flow. The company experienced accelerated customer growth, which was balanced across all customer cohorts. Supporting this growth, InvestingPro analysis reveals an impressive gross profit margin of 77.61% and a strong liquidity position with a current ratio of 6.44. There was also a mention of stabilization in the small and medium-sized business (SMB) segment, with the upmarket business continuing to expand.
The company’s growth in the EMEA region was particularly strong, and there was increased traction in the use of email and SMS among SMB and mid-market customers. Tillman highlighted Klaviyo’s potential in data and customer relationship management (CRM) platform expansion, which contributes to the firm’s view of Klaviyo as one of the top stories for sustained high top-line growth at scale.
The increased price target to $55.00 is based on Truist’s higher long-term growth estimates for Klaviyo. The analyst’s remarks underscore confidence in the company’s strategic direction and its capability to maintain a strong growth trajectory moving forward.
In other recent news, Klaviyo Inc has reported significant developments that have caught the attention of several analyst firms. The company posted a 34% year-over-year revenue increase in its fourth quarter, surpassing expectations and demonstrating robust growth in both mid-market and international sectors. This performance has led Loop Capital to raise its price target for Klaviyo to $60, citing strong fourth-quarter results and a positive revenue growth guidance for fiscal year 2025. Similarly, KeyBanc Capital Markets and Piper Sandler have also increased their price targets to $55 and $53, respectively, highlighting Klaviyo’s enterprise strength and expansion efforts.
Mizuho (NYSE:MFG) Securities has revised its price target to $52, maintaining an Outperform rating after noting Klaviyo’s impressive earnings growth from $9 million to $13 million. The company has introduced a new CRM platform tailored for B2C brands, aiming to integrate marketing, service, and analytics into a unified system. This launch marks a significant expansion for Klaviyo, potentially enhancing customer engagement and revenue for consumer brands. Despite some customer churn due to pricing adjustments, analysts remain optimistic about Klaviyo’s growth trajectory.
Klaviyo’s strategic focus on international expansion, new product introductions, and improvements in the SMB macro environment are seen as key drivers for sustained growth. Analysts at Loop Capital and Mizuho believe that Klaviyo’s market strategy and untapped target market position the company well for future success. These recent developments reflect a strong confidence among analysts in Klaviyo’s ability to maintain its growth momentum and market position.
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