Klaviyo price target lowered to $42 from $46 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Klaviyo (KVYO) to $42 from $46 and keeps an Overweight rating on the shares. Application SaaS names underperformed both the broader software group and the technology sector in 2025, but evidence is building that AI-related risks may prove less severe than initially feared, supporting a more constructive outlook for application SaaS in 2026, the analyst tells investors in a look-ahead note for the group. However, a continued lack of broad-based positive spending revisions keeps the firm “selectively opportunistic,” the analyst added.