International Expansion And AI Rollouts Will Unlock Global Opportunity

The analyst price target for Klaviyo has been modestly lowered, with fair value shifting from $46.70 to $45.81. Analysts cite concerns about the company’s revenue guidance, although they continue to expect above-average growth.

Analyst Commentary

Recent Street research has provided a nuanced view of Klaviyo’s outlook, reflecting both confidence in the company’s long-term growth potential and near-term caution regarding its revenue trajectory and broader sector pressures.

• Bullish analysts highlight Klaviyo’s expansion from email marketing to a broader customer relationship management platform. This increases its total addressable market and long-term opportunities.
• Upward revisions to price targets by certain analysts reflect renewed confidence in Klaviyo’s ability to sustain over 20% sales growth and demonstrate operating leverage. This aspect is considered underappreciated at current valuation levels.
• Strong quarterly results, including over 30% year-over-year top-line growth and significant profit and cash flow upside, reinforce Klaviyo’s position as a critical digital engagement and revenue-generating platform for brands.
• Resilient international performance, with robust growth rates even amid macroeconomic and tariff uncertainties, contributes positively to sentiment on future execution.

• Bearish analysts cite concerns about the company’s recent omission of long-term revenue guidance at its analyst day. This suggests uncertainty around Klaviyo’s ability to meet aggressive growth targets.
• Cautious commentary follows the sector’s exposure to emerging competition, with new AI-based tools challenging incumbents and potentially weighing on marketing technology valuations, including Klaviyo’s.
• Some analysts have modestly reduced their price targets, reflecting the risk that the market may be reacting to a lack of visibility on growth beyond fiscal year 2028.
• There are concerns that without explicit long-term targets, investor confidence in Klaviyo’s multi-year compounding growth may soften and impact near-term share price performance.

What's in the News

• Klaviyo unveiled its Marketing Agent and broadly released its Customer Agent, positioning itself as an AI-first B2C CRM that unifies data, marketing, service, and analytics for consumer brands. (Product-Related Announcements)
• The Marketing Agent autonomously plans and launches campaigns, creates on-brand content, and personalizes every send. The Customer Agent delivers 24/7 personalized assistance to consumers across multiple channels. (Product-Related Announcements)
• Klaviyo has launched Klaviyo Service in public beta, introducing Conversational AI Agents, Customer Hub, and Helpdesk to deliver AI-driven, personalized online shopping experiences for brands of all sizes. (Product-Related Announcements)
• Klaviyo completed a $195.1 million follow-on equity offering, issuing 6.5 million shares of Series A common stock at $30.01 per share. (Follow-on Equity Offerings)
• A lock-up period affecting various classes of Klaviyo stock and securities is set to end on October 13, 2025. This will temporarily restrict the sale or transfer of these shares and warrants. (End of Lock-Up Period)

Valuation Changes

• Consensus Analyst Price Target has decreased modestly from $46.70 to $45.81, signaling a slight reduction in perceived fair value.
• Discount Rate has moved slightly, remaining at 8.47%.
• Revenue Growth is projected to increase slightly, from 21.42% to 21.59%.
• Net Profit Margin has edged down marginally, from 4.57% to 4.55%.
• Future P/E has declined modestly, dropping from 247.8x to 243.1x.