KeyBanc Capital Markets has revised its one-year price target for Klaviyo Inc (NYSE:KVYO) downward to $40.00 from $45.00, while keeping an Overweight recommendation on the shares. The updated target remains materially higher than the stocks recent trading level of $21.12, and sits alongside an analyst-consensus view characterized as a Strong Buy.
The firm explained the reduction as a response to prevailing market multiples, even as it acknowledged Klaviyos consistently strong performance during 2025. Data from InvestingPro referenced by analysts indicates that the shares may be undervalued on several technical and fundamental measures. Specifically, the stocks relative strength index suggests it moved into oversold territory after a 55.58% decline over the past 12 months.
Operational results and growth metrics
KeyBanc highlighted Klaviyos revenue outperformance within its small and mid-cap application coverage universe through the prior year. Reported annual revenue growth reached 31.6%, which the firm noted was roughly 800 basis points ahead of the companys initial guidance. Independent InvestingPro figures cited alongside KeyBanc show 32.81% revenue growth and a robust gross profit margin of 75.15%.
Despite these operating strengths, the brokerage pointed to substantial valuation deterioration. Over the trailing 12 months, Klaviyos next-twelve-months enterprise-value-to-revenue multiple declined by 70.0%, while the stock price fell roughly 57.1% during the same interval.
Recent quarterly results and other broker moves
Klaviyos fourth-quarter 2025 results reinforced the companys top- and bottom-line momentum. Earnings per share came in at $0.19, ahead of a $0.15 forecast, and quarterly revenue reached $350.2 million versus expectations of $320.74 million. Those outcomes represent a 26.67% positive surprise on earnings and a 9.19% revenue beat. The companys net revenue retention rate improved by one percentage point, to 110%.
In reaction to the earnings and evolving outlooks, other brokerages have adjusted their targets but largely retained constructive ratings. TD Cowen reduced its price target to $35.00 from $40.00 while maintaining a Buy rating; the firm said the change reflected a reassessment of the growth outlook. Stephens lowered its target to $31.00 from $43.00 but kept an Overweight rating - the adjustment cited a valuation reset applying a 5.0x EV/FY2 revenue multiple, despite recognizing positive operational developments.
Context for investors
The sequence of price-target adjustments shows active reevaluation by sell-side analysts - shifting valuation assumptions even as underlying revenue and margin metrics remained favorable. KeyBancs decision to keep an Overweight stance indicates a view that operational outperformance should ultimately be credited, while the valuation declines reflect broader multiple compression affecting the shares.