Truist Securities announced a reduction in its price target for Klaviyo Inc (NYSE:KVYO) to $35.00 from $45.00, while maintaining a Buy rating on the marketing automation company's shares. The firm said the change reflects notable compression in sector valuations rather than any deterioration in Klaviyo's underlying business.
Truist characterized Klaviyo's fourth quarter as "strong," citing accelerating enterprise traction, record additions of customers with more than $50,000 in annual recurring revenue, and increasing uptake of multiple products across its platform. The research team highlighted early progress in Klaviyo's Service offering and in AI-powered Marketing and Customer agents, which Truist expects could provide "incremental upside" as autonomous engagement scales.
Truist also pointed to the platform's defensibility, noting that data scale together with purpose-built infrastructure underpin Klaviyo's position. The firm added that management has raised and "de-risked" guidance for fiscal year 2026, a move Truist believes supports confidence in the core business, continued growth, and the potential for margin expansion.
Other sell-side research cited in recent coverage shows a similar pattern: analysts maintained constructive stances on Klaviyo while trimming price targets in response to valuation shifts.
- Needham called Klaviyo's fourth-quarter results "very strong," but reduced its target to $30 from $45 and kept a Buy rating.
- Piper Sandler reiterated an Overweight rating with a $30 price target, noting Klaviyo exceeded top-line expectations by 5.2% and operating income projections by 14.6%.
- Management guided fiscal year 2026 revenue to a 22% midpoint, slightly above preliminary guidance, according to those notes.
- KeyBanc Capital Markets lowered its target to $40 from $45 and maintained an Overweight rating, pointing to current market multiples despite strong 2025 performance.
- TD Cowen trimmed its target to $35 from $40 while keeping a Buy rating after Klaviyo reported 30% growth, topping their 24% estimate; net revenue retention improved to 110%.
- Stephens reduced its price target to $31 from $43 and kept an Overweight rating, citing a valuation reset based on a 5.0x EV/FY2 revenue multiple.
The collective message from these research notes is consistent: Klaviyo's recent operating results and sales momentum underpin continued analyst support, but prevailing valuation dynamics across the sector have prompted multiple firms to lower price targets. Analysts singled out early traction in new service lines and AI-driven features as potential drivers of additional upside, while several also referenced market multiple compression as the rationale for reduced valuations.
As investors assess Klaviyo's outlook, the contrast between solid operational indicators and a more constrained valuation environment remains central to broker commentary. The company’s raised and de-risked FY2026 guidance was highlighted as reinforcing confidence in growth and margin trajectories, even as analysts adjust models to reflect the current multiple backdrop.