Key insights
- Goldman Sachs initiated coverage of Klaviyo (KVYO) with a 'Buy' rating and a $26 price target, suggesting significant upside potential. Despite recent stock declines and analyst target reductions, Goldman highlights Klaviyo's multiple growth vectors, strong revenue and gross margins, and expansion opportunities in new markets and product cycles, including AI. This positive initiation from a major bank could provide a near-term boost to the stock and signal potential for a turnaround.
Investing.com - Goldman Sachs initiated coverage on Klaviyo Inc (NYSE:KVYO) with a Buy rating and a price target of $26.00.
The investment bank sees 93% upside from the current trading price. Analyst Callie Valenti assumes coverage of the marketing automation company.
Klaviyo shares fell 30% after first-quarter fiscal 2026 earnings. The decline followed an announced chief financial officer departure and factors affecting sequential and year-over-year trends. The stock now trades at $13.49, down 58% year-to-date and near its 52-week low of $12.53.
Goldman Sachs cited Klaviyo’s exposure to multiple growth vectors and revenue growth in the high 20% range. The firm expects the company to continue expanding with its existing customer base and within the Shopify ecosystem.
Goldman Sachs also sees expansion opportunities in up-market segments, international markets, and outside of eCommerce. The bank expects Klaviyo to benefit from new product cycles in Service and artificial intelligence. The company posted 30% revenue growth over the last twelve months with a strong 75% gross profit margin. According to InvestingPro analysis, KVYO appears undervalued at current levels, with a comprehensive Pro Research Report available for deeper insights.
In other recent news, Klaviyo Inc. reported financial results for the first quarter of 2026 that exceeded expectations. The company achieved earnings per share of $0.22, surpassing the anticipated $0.20, and generated revenue of $358 million, outperforming the expected $348.6 million. Following these results, Stifel adjusted its price target for Klaviyo, lowering it from $35 to $28 while maintaining a Buy rating, citing a deceleration in guidance. Piper Sandler also reduced its price target from $30 to $26, maintaining an Overweight rating and expressing concerns about margins. Despite these adjustments, Canaccord Genuity reiterated a Buy rating with a price target of $32, viewing Klaviyo as an underappreciated growth story in mid-cap software. These developments highlight the varied perspectives among analysts regarding Klaviyo’s future performance. Management emphasized the company’s improved precision and accuracy in forecasting as it scales.
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