Klaus Vedfelt
Klaviyo (NYSE:KVYO) was in give attention to Wednesday after Barclays upgraded the advertising and marketing software program agency, citing a “valuation low cost” in comparison with its progress potential.
Shares rose 5.5% in premarket buying and selling.
“Klaviyo stands out as a prime progress asset that has not been correctly rewarded for its wholesome execution,” analyst Raimo Lenschow wrote in an investor word, citing its close to 19% year-to-date decline. “We see Klaviyo as resilient because of the info mannequin and plenty of avenues for progress, regardless of SMB fears, and see a path for strong beats going ahead.” Lenschow raised his score on Klaviyo to Obese from Equal-Weight and upped his value goal to $29 from $25.
Buyers are usually not giving Klaviyo credit score regardless of the actual fact it’s estimated to see 25% or extra year-over-year progress in 2025, as evidenced by the actual fact it trades “primarily in line” with its software-as-a-service peer group at 5 occasions EV/gross sales.
“Therefore, on a growth-adjusted foundation, we view Klaviyo as buying and selling at a steep low cost to friends, maybe unjustly because of the efficiency of sub-industry friends within the entrance workplace SaaS house,” Lenschow added. “Due to this fact, we see room for the inventory to rerate nearer to the 8x EV/CY25E Gross sales stage implied by extrapolating progress.”
Analysts are largely bullish on Klaviyo (KVYO). It has a BUY score from Searching for Alpha authors, whereas Wall Avenue analysts charge it a BUY. Conversely, Searching for Alpha’s quant system, which constantly beats the market, has no score on KVYO.
