Keefe, Bruyette & Woods Issues Positive Forecast for Klarna Group (NYSE:KLAR) Stock Price

Key Points

• Keefe, Bruyette & Woods raised Klarna’s price target to $26 from $22 and kept an outperform rating, implying about 69.8% upside from the prior close.
• Klarna’s latest quarterly results beat expectations, with EPS of -$0.01 versus the expected -$0.13 and revenue of $1.01 billion topping estimates while rising 42.7% year over year.
• Analyst opinion remains mixed overall, but sentiment is broadly constructive: MarketBeat shows a Moderate Buy consensus with an average target of $35.41, even as several firms hold or trim targets.

Klarna Group (NYSE:KLAR - Get Free Report) had its price target lifted by equities researchers at Keefe, Bruyette & Woods from $22.00 to $26.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Keefe, Bruyette & Woods' price objective would indicate a potential upside of 69.83% from the company's previous close.

Other analysts also recently issued reports about the company. BMO Capital Markets boosted their target price on Klarna Group from $16.00 to $17.00 and gave the company a "market perform" rating in a report on Friday. Wells Fargo & Company reduced their target price on Klarna Group from $32.00 to $26.00 and set an "overweight" rating for the company in a report on Friday. Wall Street Zen upgraded shares of Klarna Group from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Bank of America initiated coverage on shares of Klarna Group in a research note on Thursday, March 5th. They issued a "buy" rating and a $21.00 price objective for the company. Finally, TD Cowen assumed coverage on shares of Klarna Group in a research report on Monday. They set a "hold" rating and a $16.00 price target for the company. Eleven equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $35.41.

Klarna Group Stock Performance

Shares of KLAR traded down $1.16 during trading hours on Friday, hitting $15.31. The stock had a trading volume of 5,632,803 shares, compared to its average volume of 5,895,970. The firm has a 50-day moving average price of $13.98 and a 200 day moving average price of $23.02. Klarna Group has a fifty-two week low of $12.06 and a fifty-two week high of $57.20. The firm has a market capitalization of $5.78 billion and a price-to-earnings ratio of -19.99.

Klarna Group (NYSE:KLAR - Get Free Report) last released its quarterly earnings data on Thursday, May 14th. The company reported ($0.01) earnings per share for the quarter, beating analysts' consensus estimates of ($0.13) by $0.12. Klarna Group had a negative net margin of 8.41% and a negative return on equity of 11.62%. The company had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $940.90 million. The company's revenue was up 42.7% compared to the same quarter last year. As a group, analysts predict that Klarna Group will post -0.12 EPS for the current fiscal year.

Hedge Funds Weigh In On Klarna Group

Large investors have recently bought and sold shares of the stock. SG Americas Securities LLC acquired a new stake in shares of Klarna Group in the 3rd quarter worth approximately $868,000. Sumitomo Mitsui Trust Group Inc. bought a new stake in Klarna Group during the third quarter worth approximately $19,406,000. Wealth Enhancement Advisory Services LLC acquired a new stake in Klarna Group in the third quarter worth approximately $295,000. Emerald Mutual Fund Advisers Trust acquired a new position in shares of Klarna Group during the 3rd quarter valued at $628,000. Finally, TD Waterhouse Canada Inc. bought a new stake in shares of Klarna Group in the 3rd quarter worth $43,000.

More Klarna Group News

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

• Positive Sentiment: Klarna reported its first quarterly profit since listing, with adjusted operating profit of $68 million and net income of $1 million, signaling improving earnings momentum. Klarna Delivers Strong Start to 2026 With $1Bn Revenue and $68M Adj. Operating Profit
• Positive Sentiment: Revenue topped $1.0 billion, up 44% year over year, while gross merchandise volume reached $33.7 billion, both well above expectations and supportive of the stock’s rebound. Klarna Q1 Earnings Beat Estimates on Strong GMV & Network Expansion
• Positive Sentiment: The company beat analyst estimates on both EPS and revenue, helping reinforce the view that Klarna’s business is scaling more efficiently. Klarna earnings report and conference call
• Positive Sentiment: BMO Capital Markets raised its price target on KLAR to $17 from $16, indicating some analyst confidence remains after the earnings beat, even though the rating stayed at “market perform.” BMO price target raise
• Neutral Sentiment: There was also unusually heavy call option activity, suggesting traders are positioning for more upside, though this does not by itself change fundamentals.
• Neutral Sentiment: Guidance was updated for the second quarter, but the provided details were limited, so the market is likely focusing more on the earnings beat and profit milestone.

About Klarna Group

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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