Klaviyo stock could have even more room to run despite a strong post-earnings surge this week, according to Citigroup. Citigroup upgraded shares of the marketing automation platform firm to buy from neutral on Thursday, and raised its price target to $50 per share from $40. The firm’s forecast implies nearly 42% upside from Wednesday’s $35.31 close. Shares have advanced nearly 19% so far this week alone. Second-quarter earnings and revenue surpassed analyst estimates on Wednesday, and Klaviyo issued a rosy outlook for the current quarter. KVYO 1D mountain Klaviyo stock has soared this week. “Though shares traded up 15% on Wednesday, we see further upside ahead for KVYO with the Shopify ecosystem surging, incremental reassurance on de minimis/tariffs, an AI product cycle call option and catalysts ahead (favorable 2H/’26 numbers set-up, September analyst day),” analyst Tyler Radke said. “We believe Klaviyo has become increasingly underappreciated by investors against the broadening disdain for application software,” Radke added. “Unlike peers, Klaviyo’s results have held up better and the business is void of many of the terminal value issues (no seat-based pricing, not dependent on [search engine optimization]).” Radke also said that past concerns tied to President Donald Trump’s tariffs may be less of a headwind than previously thought, and could even possibly benefit in the near term. “We also wouldn’t rule out a scenario where KVYO could be a near-term beneficiary of increased messaging volumes around tariff impacts,” the analyst said. Radke also said that investors may be underappreciating Klaviyo’s artificial intelligence opportunity, which is not yet priced in to the stock. “While it’s still very early, and there is execution risk, we believe Klaviyo can ride within the ‘wake’ of Shopify’s AI push, where we understand Shopify’s strategy as enabling and in some cases relying on partners like Klaviyo (vs. competing),” he said. “Additionally, with shares trading at a historically low multiple, we don’t believe success is priced in.”
