Citi Raises Klaviyo Rating to Buy and Price Target to $50

Klaviyo's rating has been upgraded to Buy/High Risk from Neutral/High Risk by Citi, with a new price target of $50. The upgrade is attributed to the Shopify ecosystem's surge and reassurance on de minimis/tariffs. Shares rose 15% on Wednesday, and Citi sees further upside ahead for KVYO.

July 02, 2025

In a significant move, Citi has upgraded Klaviyo's (NYSE: KVYO) rating to Buy/High Risk from Neutral/High Risk, raising the price target to $50. The upgrade is attributed to the Shopify ecosystem's surge and reassurance on de minimis/tariffs. Shares of Klaviyo rose 15% on Wednesday, following the announcement, and Citi sees further upside ahead for KVYO [2].

Klaviyo, a SaaS company specializing in marketing automation, has been under the spotlight for its AI-driven platform. The upgrade from Citi reflects positive market sentiment and growing investor confidence in the company's prospects. Klaviyo's performance has been closely tied to the success of its partnerships, particularly with Shopify, which has seen robust growth driven by AI innovations and strong e-commerce demand [3].

The recent upgrade by Citi highlights the company's ability to navigate market challenges and capitalize on opportunities. The analysts at Citi pointed out that Klaviyo's stock has remained relatively flat compared to its 2023 IPO despite achieving over 30% growth and upward revisions to consensus estimates over the past two years. This suggests that investors may be underappreciating the company's value, presenting a potential opportunity for further growth [2].

Klaviyo's financials have shown positive trends, with a notable revenue growth rate of 31.91% as of 30 June, 2025. However, the company faces challenges in achieving strong profitability, with a net margin of -8.28% and a return on equity (ROE) of -2.25%. These figures indicate that while the company is growing, it needs to improve its cost control and profitability to meet investor expectations [1].

The upgrade by Citi is a positive sign for investors, but it is essential to consider the broader market conditions and Klaviyo's competitive landscape. As the company continues to innovate and expand its customer base, it will be crucial to monitor its financial performance and analyst ratings to make well-informed investment decisions.

References:
[1] https://www.benzinga.com/insights/analyst-ratings/25/08/46958929/expert-outlook-klaviyo-through-the-eyes-of-8-analysts
[2] https://seekingalpha.com/news/4481583-klaviyo-gets-rating-upgrade-at-citi
[3] https://theoutpost.ai/news-story/shopify-s-q2-earnings-soar-boosted-by-ai-innovations-and-strong-e-commerce-demand-18764/