BMO Capital Markets Lowers Klarna Group (NYSE:KLAR) Price Target to $15.00

Key Points

• BMO Capital Markets cut Klarna’s price target from $19 to $15 and maintained a “market perform” rating, implying just 1.52% upside from the stock’s $14.78 price.
• Analyst sentiment remains cautious, with Klarna holding a consensus “Hold” rating despite a recent earnings beat; Barclays and JPMorgan also lowered their targets, while the average target stands at $31.28.
• Klarna reported quarterly revenue of $1.04 billion, up 26.6% year over year, and EPS of $0.01 versus expectations for a loss, but its outlook remains pressured by weaker European demand and below-consensus full-year revenue guidance.

Klarna Group (NYSE:KLAR - Get Free Report) had its target price lowered by stock analysts at BMO Capital Markets from $19.00 to $15.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has a "market perform" rating on the stock. BMO Capital Markets' price target would suggest a potential upside of 1.52% from the company's current price.

Other analysts also recently issued reports about the company. Wall Street Zen upgraded Klarna Group from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Klarna Group from $18.00 to $27.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. Barclays reduced their target price on shares of Klarna Group from $20.00 to $16.00 and set an "equal weight" rating on the stock in a report on Wednesday. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $18.00 price target (down from $22.00) on shares of Klarna Group in a research note on Wednesday. Finally, Citizens Jmp began coverage on shares of Klarna Group in a research report on Tuesday, June 30th. They issued a "market perform" rating for the company. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $31.28.

Klarna Group Trading Down 1.9%

Shares of KLAR stock traded down $0.28 during trading hours on Wednesday, hitting $14.78. The company's stock had a trading volume of 9,379,066 shares, compared to its average volume of 5,658,300. The business has a fifty day moving average of $18.93 and a 200-day moving average of $16.73. Klarna Group has a twelve month low of $12.06 and a twelve month high of $57.20. The stock has a market cap of $5.58 billion and a price-to-earnings ratio of -28.43.

Klarna Group (NYSE:KLAR - Get Free Report) last announced its earnings results on Friday, August 14th. The company reported $0.01 EPS for the quarter, beating analysts' consensus estimates of ($0.06) by $0.07. The firm had revenue of $1.04 billion for the quarter. Klarna Group had a negative return on equity of 7.62% and a negative net margin of 5.21%.The company's revenue was up 26.6% on a year-over-year basis. On average, equities analysts expect that Klarna Group will post 0.05 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of KLAR. Renaissance Technologies LLC raised its position in shares of Klarna Group by 173.9% in the 1st quarter. Renaissance Technologies LLC now owns 2,043,100 shares of the company's stock worth $26,744,000 after buying an additional 1,297,200 shares during the period. Renaissance Capital LLC grew its position in Klarna Group by 532.5% during the second quarter. Renaissance Capital LLC now owns 103,656 shares of the company's stock valued at $2,098,000 after acquiring an additional 87,267 shares during the period. Baader Bank Aktiengesellschaft acquired a new stake in Klarna Group during the first quarter worth about $1,964,000. Sumitomo Mitsui Trust Group Inc. increased its stake in Klarna Group by 47.5% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,198,554 shares of the company's stock worth $15,689,000 after acquiring an additional 385,811 shares during the last quarter. Finally, UBS Group AG raised its holdings in shares of Klarna Group by 32.9% in the 4th quarter. UBS Group AG now owns 1,376,248 shares of the company's stock worth $39,787,000 after purchasing an additional 340,562 shares during the period.

Trending Headlines about Klarna Group

Here are the key news stories impacting Klarna Group this week:

• Positive Sentiment: Klarna exceeded second-quarter expectations, reporting earnings of $0.01 per share versus analysts’ expected loss of $0.06 and revenue of $1.04 billion, up 26.6% year over year. GMV rose 18% to $36.6 billion, while adjusted operating income increased 214% to $91 million. Klarna Reports Second Quarter 2026 Results
• Positive Sentiment: Wells Fargo retained an “overweight” rating despite reducing its price target from $26 to $21, implying substantial potential upside if Klarna can restore confidence in its growth outlook. Klarna also highlighted rising engagement, including 6.5 million card users and higher revenue per active consumer. Klarna Card Users Hit 6.5 Million
• Neutral Sentiment: Klarna announced planned early-2027 transitions for CFO Niclas Neglén and CMO David Sandström. Both executives will remain in place during the handover, limiting the immediate operational impact, but the leadership changes add execution uncertainty. Klarna Announces Planned CFO and CMO Transitions
• Negative Sentiment: Management forecast full-year 2026 revenue of $4.1 billion to $4.2 billion, below the $4.4 billion consensus estimate, and reduced its volume outlook amid weaker German and broader European consumer activity. Third-quarter revenue guidance of $940 million to $980 million also trails the $1.1 billion consensus. Klarna Shares Plunge as Full-Year Revenue Outlook Disappoints
• Negative Sentiment: Analysts have broadly cut estimates following the guidance reduction. TD Cowen lowered its target to $18 and assigned a “hold” rating, Barclays cut its target to $16 with an “equal weight” rating, and JPMorgan reduced its target from $22 to $18 while maintaining “neutral.” These revisions signal reduced expectations for near-term growth.

Klarna Group Company Profile

Klarna Group is a global payments provider specializing in “buy now, pay later” (BNPL) solutions for online and in-store shoppers. The company partners with merchants to offer flexible payment options, including interest-free installments and deferred payments, aiming to enhance conversion rates and customer loyalty. Klarna’s platform integrates risk assessment, fraud prevention, and a one-click checkout experience to streamline transactions for both retailers and consumers.

Through its digital wallet and mobile app, Klarna enables users to manage purchases, track spending and access exclusive shopping offers from partner merchants.

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