Analysts Rally Behind Klaviyo Post-IPO: Untapped Shopify Potential And Innovative Capabilities Drive Bullish Sentiment

Several analysts initiated coverage on Klaviyo Inc KVYO following its trading debut last month.

In September, marketing and data automation provider Klaviyo priced its initial public offering above expectations, raising $576 million.

Piper Sandler analyst Brent A. Bracelin initiated coverage with an Overweight Rating and price target of $38. 

The bullish rating reflects untapped potential with just 4% logo penetration at Shopify Inc SHOP, a disciplined strategy of balancing 30% growth and 10%+ non-GAAP operating margin, and a diversified revenue base and pricing standard.

Also Read: Synergy In Action: Klaviyo's IPO Triumph With Shopify's Backing

The analyst estimates revenue and EPS of $682.2 million and $0.31 in FY23 and $887.3 million and $0.35 in FY24. 

Initiated at a Buy rating, Needham announced a price target of $40, Truist Securities disclosed a target of $42, and Mizuho assigned a price target of $40.

Needham analyst Scott Berg believes KVYO can maintain its above-average growth rate as its customers abandon legacy Mar-tech stacks 'that cannot pivot properly to engage consumers in multi-channel commerce opportunities.'

Berg sees an early-stage exclusive commercial partnership with Shopify as an advantage and expects long-term share gains thanks to the company's industry-leading innovation capability.

The analyst estimates revenue and EPS of $682.7 million and $0.32 in FY23 and $884.0 million and $0.42 in FY24, respectively. 

Also, Mizuho analyst Siti Panigrahi believes the company is poised for sustainable growth rates in the foreseeable future, given its best-in-class platform, international expansion, and cross-selling opportunities. 

Consequently, the analyst forecasts revenue growth of 44% to $683 million and FCF margins of 11% in FY23. 

Moreover, William Blair analyst Arjun Bhatia initiates coverage at an Outperform rating. 

The analyst sees a strong fundamental performance from the company on revenue and profitability led by current and new TAMs. 

Bhatia estimates revenue of $676.8 million in FY23 and $868.5 million in FY24. 

Apart from this, with an Equal-Weight rating, Barclays initiated coverage at a price target of $37, and Morgan Stanley commenced at a target of $38.

Price Action: KVYO shares are trading higher by 0.98% at $31.84 on the last check Monday.