Benzinga - by Lekha Gupta, Benzinga Editor.
Several analysts initiated coverage on Klaviyo Inc (NYSE: 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 (NYSE: 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.
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