Piper Sandler has adjusted its price target for Klaviyo (KVYO, Financial), revising it downwards from $53 to $35, while maintaining an Overweight rating on the company's stock. This adjustment is part of a broader recalibration across the cloud applications and analytics sector, as the industry faces a range of immediate obstacles.
The firm has expressed concerns over near-term challenges affecting growth, particularly due to tariffs, policy changes, and hurdles in adopting artificial intelligence technologies. The overall sentiment towards application software companies has become increasingly negative, influenced by four consecutive years of slowing industry growth, and complications related to AI adoption. These factors suggest a cooling in the previously strong enthusiasm for AI within the sector.
Piper Sandler notes that valuation multiples within the industry have fallen to their lowest levels in seven years. Although tariffs have only a minor direct impact on software models, these additional pressures contribute to an overall more cautious outlook for companies like Klaviyo.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Klaviyo Inc (KVYO, Financial) is $48.13 with a high estimate of $60.00 and a low estimate of $34.00. The average target implies an upside of 96.83% from the current price of $24.45. More detailed estimate data can be found on the Klaviyo Inc (KVYO) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Klaviyo Inc's (KVYO, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
