Wall Street Analysts Provide Mixed Ratings for Klaviyo Following IPO
Positive and Concerns
Wall Street analysts have recently initiated coverage of Klaviyo with a range of buy and hold-equivalent ratings after the company’s successful initial public offering (IPO). While recognizing Klaviyo’s unique offerings and its strong ties to Shopify, analysts also expressed concerns about the company’s valuation.
Share Price and Analyst Coverage
Klaviyo’s shares closed at $31.53 on Friday, representing a 5% increase from its IPO price of $30. Twelve analysts have released coverage reports, with eight starting with a Buy or equivalent rating.
Piper Sandler’s Positive Outlook
Piper Sandler analysts initiated research coverage with an Overweight rating and provided a price target of $38. They based their rating on several factors, including Klaviyo’s low market penetration at Shopify, a strategic growth plan, a diverse revenue base, and the potential for new products.
Goldman Sachs’ Cautious Stance
On the other hand, analysts at Goldman Sachs expressed caution about Klaviyo’s stock, attributing it to a fair valuation. They believe that momentum in the upmarket and diversification outside of retail/e-commerce will be crucial for long-term stock performance.
It is worth noting that Klaviyo’s IPO has generated enthusiasm among investors, with the company’s shares trading higher than their initial offering price. However, analysts have differing opinions on the stock’s potential. While some view it as an attractive investment opportunity, others believe that the positive aspects of the company may already be factored into the share price.
Overall, the mixed ratings from Wall Street analysts reflect the varying perspectives on Klaviyo’s growth prospects and valuation. Investors will be closely monitoring the company’s performance and market penetration in the coming months.