Klaviyo, Inc.: Strong Growth Prospects and Undervalued Stock Present a Compelling Buy Opportunity

In a report released today, Derrick Wood from TD Cowen reiterated a Buy rating on Klaviyo, Inc. Class A, with a price target of $46.00.

Derrick Wood’s rating is based on Klaviyo, Inc.’s impressive financial performance and growth prospects. The company reported a robust 32% revenue growth in the third quarter, surpassing market expectations of 28%, and has raised its fiscal year 2025 growth guidance to 30%. This positions Klaviyo among the top software companies expected to achieve over 30% growth in the coming years.
Furthermore, Klaviyo is successfully executing its growth strategies across various segments, including mid-market, international, and multi-product offerings. The company has seen a significant increase in high-value customer acquisitions and international growth, alongside the successful launch of new service products. Despite its strong performance and growth potential, Klaviyo’s stock is undervalued compared to its peers, presenting a compelling buying opportunity. Derrick Wood believes that the company’s consistent execution and strategic expansion into new markets will drive continued success.

In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $35.00 price target.

Based on the recent corporate insider activity of 92 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KVYO in relation to earlier this year.