Klaviyo, Inc.: Strong Performance and Growth Potential Justify Buy Rating

Derrick Wood, an analyst from TD Cowen, reiterated the Buy rating on Klaviyo, Inc. Class A (KVYO – Research Report). The associated price target was lowered to $45.00.

Derrick Wood has given his Buy rating due to a combination of factors that highlight Klaviyo, Inc.’s strong performance and growth potential. The company reported a robust first-quarter revenue growth of 33%, surpassing market expectations of 28%, and demonstrated resilience against macroeconomic challenges. Klaviyo’s management has effectively capitalized on key growth drivers such as expanding into international markets and enhancing their SMS offerings, which are crucial for sustained revenue growth.
Moreover, Klaviyo’s strategic initiatives in developing new B2C CRM offerings and marketing solutions are gaining traction, positioning the company for future growth. The company’s ability to maintain stable demand despite economic uncertainties, coupled with strong customer retention and expansion in international markets, further supports the Buy rating. Additionally, Klaviyo’s valuation remains attractive, with a favorable EV/Sales multiple, indicating potential for continued upside. These factors collectively contribute to Derrick Wood’s positive outlook on Klaviyo’s stock.

Wood covers the Technology sector, focusing on stocks such as Oracle, ServiceNow, and Confluent. According to TipRanks, Wood has an average return of 14.0% and a 59.88% success rate on recommended stocks.

In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $40.00 price target.