TD Cowen maintains Buy on Klaviyo shares with $34 target

On Wednesday, TD Cowen expressed continued confidence in Klaviyo Inc (NYSE:KVYO), maintaining a Buy rating and a price target of $34.00. The firm's endorsement comes as Klaviyo prepares to announce its second-quarter earnings after the market closes today. The optimism is partly based on positive indicators from the recent earnings reports of Shopify (NYSE:SHOP) Inc. and Twilio (NYSE:TWLO) Inc., which have shown promising trends that could bode well for Klaviyo.

Shopify reported this morning, outperforming growth expectations, which led to a significant 23% increase in its stock price. Last week, Twilio highlighted an acceleration in email send volumes within the e-commerce sector. These developments are seen as favorable signs for Klaviyo, which operates in the same industry.

Despite the varying levels of software spending in the current market environment, TD Cowen remains bullish on Klaviyo's prospects. The firm has reiterated Klaviyo as a Top Pick, suggesting strong confidence in the company's performance and potential ahead of the upcoming earnings report.

In other recent news, Klaviyo Inc. has made significant strides in its operations and market position. TD Cowen has reiterated a Buy rating for Klaviyo, highlighting the company's sustained growth performance and its potential for over 30% growth rate this year. Barclays upgraded Klaviyo's stock rating to overweight and increased the price target to $29, reflecting optimism about the company's growth prospects. However, Baird adjusted its outlook on Klaviyo, lowering its price target to $35.00 while maintaining an Outperform rating.

Klaviyo's Q1 results for 2024 surpassed estimates, with revenue and adjusted EBIT figures exceeding expectations by 3.9% and 23.0% respectively. The company recently held its annual meeting, where shareholders elected Andrew Bialecki, Ping Li, and Tony Weisman as Class I directors. Deloitte & Touche LLP was ratified as the company's independent auditor for the fiscal year ending December 31, 2024.

In terms of strategic partnerships, Klaviyo announced a collaboration with TikTok to integrate its customer segmentation tools with the social media platform. This move is expected to streamline the process of ad targeting and improve relationships with potential buyers. Furthermore, Klaviyo's expansion into SMS in nine countries and the rollout of new features such as multi-account management systems are projected to drive market share gains.

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