© Reuters. Klaviyo Earns Predominantly Positive Sell Ratings After Recent IPO
Wall Street analysts have begun coverage of klaviyo (NYSE:) with a mix of buy and hold ratings following the company’s recent initial public offering (IPO).
While analysts acknowledged Klaviyo’s unique offerings, its connection to Shopify (NYSE:), and its growth potential, they also raised concerns about the company’s valuation.
Some analysts believe that the company’s positive aspects may already be reflected in the share price.
Klaviyo shares closed at $31.53 on Friday, up about 5% from their IPO price of $30.
12 analysts issued new coverage reports, and 8 started with a Buy or equivalent rating.
Analysts at Piper Sandler initiated coverage of the research with an Overweight rating.
“We are initiating coverage on KVYO at Overweight with a PT of $38 based on 1) just 4% logo penetration on Shopify, 2) a disciplined strategy of balancing ~30% growth alongside a non-GAAP operating margin of more than 10%, 3) diversified. revenue base and pricing model linked to customer contacts and credits, and 4) potential for new products,” the analysts said.
Goldman Sachs analysts are more cautious on KVYO stock amid a “fair” valuation.
“We view the shares as fairly valued at current levels, and are looking to drive the higher value market and diversification away from retail/ecocom to unlock long-term outperformance of the shares.”
