In a report released today, Scott Berg from Needham maintained a Buy rating on Klaviyo, Inc. Class A (KVYO – Research Report), with a price target of $56.00.
Scott Berg has given his Buy rating due to a combination of factors that reflect a positive outlook for Klaviyo, Inc. The company reported a strong fourth-quarter performance, marked by its highest revenue growth since its IPO. This impressive financial result was driven by a significant increase in net new customer additions, stable net revenue retention, and quarter-over-quarter growth in average revenue per account, indicating a successful uptake of their SMS services during a seasonally strong period.
Additionally, Berg is optimistic about Klaviyo’s strategic initiatives, including their new partnership with WooCommerce and upcoming product announcements focused on business-to-consumer (B2C) solutions. The introduction of a new customer relationship management (CRM) product is expected to be a major expansion, potentially leading to better customer engagement and adoption than previous offerings. Despite some mixed reactions to the company’s new pricing model, Berg sees the potential for these developments to drive growth beyond the current fiscal year, solidifying his Buy recommendation.
Berg covers the Technology sector, focusing on stocks such as Salesforce, SPS Commerce, and Five9. According to TipRanks, Berg has an average return of -2.2% and a 45.29% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $53.00 price target.