Analyst Michael Berg from Wells Fargo maintained a Hold rating on Klaviyo, Inc. Class A (KVYO – Research Report) and increased the price target to $48.00 from $41.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Michael Berg has given his Hold rating due to a combination of factors influencing Klaviyo, Inc. Class A’s stock. Although the company is experiencing a healthy Q4 setup with positive partner feedback and improving macroeconomic data, these factors are not expected to serve as a significant catalyst for the stock. The company is projected to achieve a year-over-year growth of about 32%, slightly below previous quarters, and a stable FY25 outlook with no major changes anticipated.
The valuation of Klaviyo’s shares, trading at approximately 13 times the next twelve months enterprise value to sales (EV/S), is slightly below its high-growth software peers. While the company offers a differentiated product in a sizable market, its vertical and SMB concentration, competitive landscape, and macroeconomic challenges contribute to a cautious outlook. These elements collectively support the Hold rating, suggesting that while the stock has potential, it is currently fairly valued and lacks immediate upward momentum.
According to TipRanks, Berg is a 3-star analyst with an average return of 5.1% and a 54.55% success rate. Berg covers the Technology sector, focusing on stocks such as Monday.com, Klaviyo, Inc. Class A, and CSG Systems International.
In another report released yesterday, Citi also maintained a Hold rating on the stock with a $48.00 price target.