Citi lowers Klaviyo target, opens ‘negative catalyst watch’

Citi lowered the firm’s price target on Klaviyo to $31 from $33 and keeps a Neutral rating on the shares. The analyst also opened a “90-day negative catalyst watch” on the shares. The firm sees risk of near-term downside to the stock post the earnings report on February 27 due to a potentially weaker fiscal 2024 revenue outlook that could reflect incremental caution tied to email sender requirement changes causing customers to reduce monthly distribution list sizes and/or messaging volumes. It also notes Klaviyo will see a lock-up expiry on February 29.