Cantor Fitzgerald has lowered its price target on Klaviyo Inc. (NYSE:KVYO) to $35.00, while keeping an Overweight rating on the marketing automation company. At the stated $21.20 share price, the $35 target reflects about a 65% upside. Analyst targets cited span a range from $29 to $51, and InvestingPro data flags the stock as appearing undervalued on Fair Value metrics.
The brokerage's reassessment arrives despite Klaviyo delivering a stronger-than-expected fourth quarter. Revenue grew nearly 30% year-over-year versus company guidance that had been roughly 23%. Management also reported a rise in Net Revenue Retention to 110% and more than 37% growth in the cohort of customers spending $50,000 or more annually. InvestingPro data show Klaviyo's trailing 12-month revenue growth at 32.8%, underscoring the company’s recent growth trajectory.
On the margin and cash-flow side, Klaviyo posted roughly a 500 basis point improvement in free cash flow margin for the quarter. Cantor Fitzgerald attributed the improvement in part to continued organic usage expansion across the platform and pointed to the company’s non-seat-based pricing model as a contributor to the better-than-expected profile. The firm also highlighted that meaningful cross-selling of new functionality has driven Annual Recurring Revenue from multi-product customers to account for more than 60% of total revenue, with scaling efficiencies further aiding profitability.
Despite these operational positives, Cantor Fitzgerald trimmed its price target to reflect what it described as "lower multiples across the software universe." The firm nonetheless reiterated that Klaviyo "is positioned to capture significant market share and effectively monetize AI going forward" and that shares "should remain a key holding for long-term investors."
Other sell-side shops have similarly revisited their targets in light of the current valuation backdrop even as they acknowledged Klaviyo's recent performance. Piper Sandler reported that Klaviyo beat top-line expectations by 5.2% in the quarter and exceeded operating income projections by 14.6%. Management also guided fiscal year 2026 revenue to a midpoint of 22% growth, slightly higher than its preliminary guidance.
Several firms adjusted their targets following the quarter. Truist Securities lowered its price target to $35, citing sector valuation compression while maintaining a Buy rating. Needham trimmed its target to $30, noting robust holiday-season sales and customer expansion. KeyBanc reduced its target to $40 based on prevailing market multiples while recognizing Klaviyo’s strong 2025 performance. TD Cowen cut its target to $35 after the company reported roughly 30% growth, above the firm’s prior estimate of 24%.
The market reaction to Klaviyo's results and the subsequent round of target changes illustrates the tension between company-level operational progress and a broader software valuation reset. Klaviyo's reported lift in revenue growth, improved free cash flow margin and rising contribution from multi-product customers point to strengthening unit economics and platform leverage. At the same time, analysts are adjusting valuations to reflect compressed multiples across the sector, producing a spread of price targets from $29 to $51.
Key metrics and analyst notes:
- New Cantor Fitzgerald target: $35.00; rating: Overweight.
- Share price referenced: $21.20; implied upside: ~65%.
- Analyst target range cited: $29 to $51.
- Trailing 12-month revenue growth (InvestingPro): 32.8%.
- Quarterly revenue growth: nearly 30% year-over-year (company guidance ~23%).
- Net Revenue Retention: 110%.
- Customers spending $50,000+: >37% growth.
- Free cash flow margin: ~500 basis points improvement quarter-over-quarter.
- ARR from multi-product customers: >60% of revenue.
The data present a picture of a company improving both top-line growth and cash generation while increasing its mix of higher-value, multi-product customers. Yet the downward reset to price targets across several brokerages signals that market-wide multiples remain a decisive factor in near-term valuation.