Update shared on 01 Dec 2025
Analysts have modestly lowered their average price targets for Klaviyo shares by $1 to $5, citing ongoing revenue growth expectations but cautioning that the lack of long-term guidance has tempered projections despite healthy fundamentals.
Analyst Commentary
Recent analyst research on Klaviyo highlights a mix of optimism surrounding the company’s market position and growth prospects, as well as ongoing concerns related to guidance and sector headwinds.
Bullish Takeaways
- Bullish analysts see Klaviyo as attractively valued, arguing that current risks, including those related to AI, are more than reflected in the current valuation relative to historic levels.
- There is confidence that Klaviyo's transition from email marketing to a broader customer relationship management platform will expand its addressable market and drive sustained growth in sales exceeding 20%.
- Improving operating leverage is seen as underappreciated, with analysts expecting stronger execution to unlock further upside for the stock.
- Some expect Klaviyo to outperform consensus growth estimates through 2028, projecting annual compound growth above widely anticipated Street forecasts.
Bearish Takeaways
- Bearish analysts remain concerned by the absence of long-term revenue targets, as the company declined to provide fiscal year 2028 guidance.
- There is caution resulting from recent price target reductions, as uncertainty regarding management’s outlook weighs on investor sentiment.
- Headline risks linked to advances in AI marketing tools and increased competition in the broader front office marketing segment are expected to pressure both Klaviyo shares and the sector overall.
- Ongoing sector headwinds, including potential disruptions from leading AI announcements, leave some analysts skeptical that fundamentals alone can sustain recent growth momentum.
What's in the News
- Klaviyo raised its financial guidance for 2025, projecting annual revenue between $1,215.0 million and $1,219.0 million. This projection represents a 30% growth rate. (Key Developments)
- The company has provided earnings guidance for the fourth quarter ending December 31, 2025. It expects revenue to reach $331.0 million to $335.0 million, reflecting a year-over-year growth rate of 23% to 24%. (Key Developments)
- Klaviyo launched its Marketing Agent and broadly released its Customer Agent, positioning itself as an AI-first B2C CRM platform. These tools unify data, marketing, service, and analytics and deliver 24/7 personalized consumer assistance across channels. (Key Developments)
Valuation Changes
- Fair Value remained steady at $43.68 per share with no material change in the latest update.
- Discount Rate rose slightly to 8.44%, up from 8.44% previously. This reflects marginally higher perceived risk.
- Revenue Growth increased modestly to 21.1% from 20.7%, suggesting analysts expect a somewhat faster pace of expansion.
- Net Profit Margin declined to 2.69%, down from 3.19%. This indicates slightly lower anticipated profitability.
- Future P/E (price-to-earnings ratio) climbed to 373.1x from 318.0x. This demonstrates a higher valuation multiple based on projected earnings.
Disclaimer
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