Analyst Ratings February 11, 2026

Benchmark Lifts Klaviyo Target to $33 After Strong Q4; Cites Customer Growth and Margin Expansion

Analyst maintains Buy as revised estimates and DCF valuation point to more than 50% upside from current levels

By Avery Klein KVYO
Benchmark Lifts Klaviyo Target to $33 After Strong Q4; Cites Customer Growth and Margin Expansion
KVYO

Benchmark increased its price target on Klaviyo to $33 from $30 and kept a Buy rating following a robust fourth-quarter report and forward guidance. The firm pointed to continued customer additions, elevated revenue growth and gradual operating margin expansion, supported by positive estimate revisions and a discounted cash flow valuation.

Key Points

  • Benchmark raised Klaviyo’s price target to $33 from $30 and maintained a Buy rating - impacts equity investors and software sector valuations.
  • Klaviyo delivered strong Q4 metrics: nearly 30% YoY revenue growth, 110% net revenue retention, and 37%+ growth in customers spending $50,000+ - relevant to SaaS and marketing-technology demand assessments.
  • Benchmark cited agentic stack differentiation, sustained customer additions and margin expansion, and used positive estimate revisions within a DCF framework to justify the higher target - relevant to valuation models and sell-side coverage.

Benchmark on Wednesday raised its 12-month price target for Klaviyo Inc to $33.00 from $30.00 and reiterated a Buy rating on the shares. The new target implies a 54% upside from the stock's current trading level of $21.42.

The upward revision follows what Benchmark characterized as a "healthy 4Q print and guide," with the research team highlighting continued strong customer additions, elevated top-line performance and steady expansion of operating margins. Those qualitative takeaways sit alongside the company’s reported metrics: 32.81% revenue growth over the last twelve months and a gross profit margin of 75.15%.

Benchmark’s note singled out several themes discussed on Klaviyo’s earnings call. Among them were the company’s agentic stack differentiation and its progression in winning new customers. The research firm said it incorporated positive estimate revisions into its modeling and based its updated target on a discounted cash flow valuation.

Operational results cited by Benchmark and confirmed in Klaviyo’s financial release included nearly 30% year-over-year revenue growth for the quarter, which exceeded the company's own guidance of roughly 23%. The company also reported a Net Revenue Retention rate of 110% and more than 37% growth in customers spending at least $50,000 annually.

Technical and valuation signals were also referenced in the context of the analyst move. Technical indicators suggest the stock is in oversold territory, and the valuation work referenced by Benchmark indicates the shares are trading below a fair-value assessment, supporting the firm’s view of a material upside opportunity.

Benchmark is not the only firm to update its outlook after the quarter. Several other brokerages issued revised price targets and reiterated ratings, with the changes reflecting a mix of recognition for Klaviyo’s strong execution and broader sector valuation considerations:

  • Cantor Fitzgerald and Truist Securities both trimmed their price targets to $35 while keeping Overweight and Buy ratings, respectively, citing sector valuation dynamics as a reason for the lower targets.
  • Needham reduced its target to $30 but maintained a Buy rating, pointing to solid holiday-season sales and customer expansion as supporting factors.
  • Piper Sandler reiterated an Overweight rating with a $30 target, citing Klaviyo’s results that beat revenue and operating income expectations.
  • KeyBanc lowered its price target to $40 and continued to carry an Overweight rating, noting the company’s strong performance across the 2025 period.

Taken together, the analyst actions reflect a balance between recognition of Klaviyo’s recent execution and differing views on appropriate valuation levels for the marketing automation and customer data platform market. Benchmark’s decision to raise its target was driven by model changes and the firm’s DCF-based fair value work, while other firms adjusted targets to reflect both the quarterly beat and sector valuation pressures.


Detailed summary

Benchmark raised its price target to $33 from $30 and kept a Buy rating after Klaviyo posted strong fourth-quarter results and offered constructive guidance. The firm cited customer growth, top-line strength and margin improvement, applied positive estimate revisions and used a DCF model to arrive at the new target, which implies a 54% upside from $21.42. The company reported roughly 30% year-over-year revenue growth for the quarter, a 110% net revenue retention rate and over 37% growth in $50,000-plus customers. Multiple other brokerages adjusted price targets following the results.

Risks

  • Valuation sensitivity - several firms trimmed targets citing sector valuation considerations, indicating equity valuations in the software and marketing-technology sectors remain a source of uncertainty.
  • Execution and guidance risk - while Klaviyo beat guidance and grew customers, future performance and margin expansion will determine whether analysts’ positive revisions hold - relevant to SaaS operators and cloud infrastructure demand.
  • Analyst divergence - differing price-target moves among brokerages show uncertainty in the appropriate valuation multiple for the company and the sector, which could lead to volatile stock reactions.

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