Klaviyo initiated with a Buy at Needham

Needham initiated coverage of Klaviyo (KVYO) with a Buy rating and $40 price target. The firm believes Klaviyo is “the early leader in the Next Gen customer engagement software market” with the largest scale and fastest revenue growth and thinks the company can sustain its growth at an above-average rate. Given its early-stage exclusive commercial partnership with Shopify (SHOP), the firm forecasts long-term share gains on the strength of Klaviyo’s “industry-leading innovation,” the analyst added.