Klaviyo Poised To Capture Market Share In 'Sizable Digital Marketing Space': Analyst

Shares of Klaviyo Inc KVYO have soared more than 40% year to date.

Stifel says the company is positioned to capture market share in the "sizable digital marketing space in the coming years.”

Analyst Parker Lane initiated coverage of Klaviyo with a Buy rating and price target of $45.

The Klaviyo Thesis: The company has a large TAM (total addressable market). It offers "ample opportunity for both net new customer acquisition and expansion," Lane said in the initiation note.

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Klaviyo's marketing automation platform allows businesses to drive revenue growth by using a customer's own data to deliver personalized messages at the right time across email, SMS, and push notifications.  

The company's ability to "demonstrate a clear ROI for customers and prospects should promote consistent customer acquisition in the coming years," the analyst stated. The platform offers the potential to "drive deeper relationships" and higher usage and revenue with existing customers, he added.

With retail purchases increasingly shifting to e-commerce, brands are likely to continue investing heavily in digital marketing for customer acquisition and retention, due to which Klaviyo’s integration with e-commerce "offers a significant value proposition for marketers," Lane wrote.

"We expect this trend will continue to serve as a tailwind to Klaviyo’s business, and will be a key focus in platform and ecosystem development in the future," he further said.

KVYO Price Action: Shares of Klaviyo had risen by 0.03% to $38.02 at the time of publication on Tuesday.

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