Cantor Fitzgerald initiates Klaviyo stock with overweight rating

On Tuesday, Cantor Fitzgerald analysts initiated coverage on Klaviyo Inc (NYSE: NYSE:KVYO) with an Overweight rating. The firm set a price target of $48 for the stock, reflecting a valuation of 9.7 times their 2026 revenue estimate. Currently trading at $33.90, InvestingPro analysis suggests the stock is slightly overvalued, with analyst targets ranging from $32 to $60.

Klaviyo is recognized as a leading provider of B2C CRM and customer engagement tools, with impressive revenue growth of 34% in the last twelve months, reaching $1 billion. The company holds a strong competitive position within the ecommerce sector, maintaining robust gross margins of 76%, while benefiting from the industry’s long-term growth trends. Klaviyo’s integration with Shopify (NYSE: NASDAQ:SHOP) further strengthens its market presence.

The company is expanding beyond its roots in ecommerce small and medium-sized businesses, moving towards larger enterprises. This strategic shift is expected to enhance unit economics and diversify Klaviyo’s business operations.

Klaviyo has shown improved operating leverage as it scales, with gross margins in the mid-to-high 70% range and free cash flow margins between 16% and 17%. The firm continues to deliver strong innovation in its product offerings.

In other recent news, Klaviyo Inc. reported first-quarter earnings that exceeded expectations, with a notable 5% increase in revenue beyond projections. The company has also adjusted its fiscal year 2025 forecast, now anticipating a 26% growth, up from a previous estimate of 24%. Despite a decrease in gross margins, Klaviyo has maintained steady customer retention rates, contributing to higher-than-expected net customer additions. Meanwhile, Klaviyo’s CEO, Andrew Bialecki, has initiated a $372 million stock sale to address tax obligations related to expiring stock options. Analyst firms have reacted to these developments, with Benchmark raising its price target for Klaviyo to $44 and maintaining a Buy rating, while Stifel reduced its target to $45 but also retained a Buy rating. Truist Securities reiterated a $40 price target, emphasizing Klaviyo’s resilience and strategic initiatives. Scotiabank (TSX:BNS) increased its price target to $35, noting Klaviyo’s strong performance in revenue and its strategic positioning in the B2C CRM market. These recent developments reflect continued confidence in Klaviyo’s growth trajectory and strategic direction.

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