Needham has maintained its buy recommendation on Klaviyo, lifting the price target to $30 from $20.64 as the company’s new AI-powered Composer tool gains traction among customers.
The brokerage firm highlighted that approximately 95,000 customers—representing roughly 45% of Klaviyo’s total base—have adopted the Composer tool since its launch on June 30. Of those users, about 25% returned to the tool within 90 days under a free credit promotion, signaling strong early engagement.
Klaviyo reported second-quarter 2026 revenue of $370.6 million, exceeding Wall Street’s estimate of $362.1 million. Adjusted earnings per share matched analyst forecasts at $0.19. The company’s Q2 revenue grew 26% year-over-year, though its revenue beat margin of about 2% was slightly below the prior quarter’s roughly 2.5%.
Needham’s bullish stance reflects confidence in Klaviyo’s AI-driven growth trajectory, particularly as the firm anticipates increasing contributions from artificial intelligence in fiscal year 2027. The brokerage’s updated price target of $30 implies a potential upside of nearly 50% from Klaviyo’s recent trading price of around $20.63.
TD Cowen, another firm covering Klaviyo, maintained its buy rating but trimmed its price target to $26 from $27, citing a reassessment of valuation metrics. The stock has risen about 16% over the past week, reflecting investor optimism tied to the AI tool’s adoption and revenue performance.
