Klaviyo Stock (KVYO) Moves Off Lows as Wall St Grows Bullish: Is the Selloff Overdone?

Klaviyo Inc. (NYSE: KVYO) witnessed a surge in its stock price following the initiation of coverage by Jefferies, who assigned a Buy rating, suggesting the recent selloff driven by AI anxieties may be overdone. The marketing automation platform's stock, currently trading around $26.20, experienced a positive shift after a challenging year.

The stock experienced a notable rally, with shares up 8% during intraday trading, reaching a high of $26.48. This upward movement comes as a welcome change for investors who have seen the stock decline by approximately 37.08% year-to-date, reflecting broader market concerns about the impact of artificial intelligence on the sector.

Jefferies's analysis points to a valuation of approximately 4.6 times the next twelve months' revenue, a level near all-time lows, indicating that the market may have overreacted to the AI threat. The firm projects substantial growth for Klaviyo, estimating a compound annual growth rate of about 20%, potentially reaching $2 billion in revenue by 2028. Improved margins are also anticipated, with Jefferies forecasting a 15% margin by 2028 as the business scales.

Analyst Perspectives

Other analyst firms have also weighed in recently. Goldman Sachs reiterated its Buy rating with a price target of $48 following Klaviyo's investor day, despite an 8% stock decline on the day of the event. The investor day highlighted the company's focus on AI-driven marketing solutions. TD Cowen also maintains a Buy rating, emphasizing Klaviyo's expansion into customer service and the introduction of new AI agents capable of generating revenue.

However, certain analysts have revised targets lower, despite maintaining an overall bullish stance. Stifel adjusted its price target downward from $54 to $45, maintaining a Buy rating after Klaviyo's first-quarter earnings report. Canaccord Genuity also reduced its price target from $50 to $45, while still maintaining a Buy rating, citing a challenging growth environment for small and medium-sized businesses.

Price Targets