Klarna Group (NYSE:KLAR) Coverage Initiated at BMO Capital Markets

Key Points

• BMO Capital Markets initiated coverage on Klarna Group with a market perform rating and a $16.00 price target, implying about a 9.9% upside from the prior close.
• The analyst picture is mixed: the consensus rating is Moderate Buy with a $36.94 average price target, but several firms recently cut targets (JPMorgan to $20, Morgan Stanley to $23, UBS to $20) and ratings range from Buy to Sell.
• Klarna shares trade around $14.56 (52-week range $12.06–$57.20) with a $5.49B market cap; the company missed quarterly EPS expectations (reported -$0.12 vs. -$0.03 expected), posted negative net margin and ROE, and has a 50-day SMA well below its 200-day SMA.

Investment analysts at BMO Capital Markets initiated coverage on shares of Klarna Group (NYSE:KLAR - Get Free Report) in a report released on Wednesday. The firm set a "market perform" rating and a $16.00 price target on the stock. BMO Capital Markets' price target suggests a potential upside of 9.93% from the company's previous close.

KLAR has been the subject of a number of other research reports. JPMorgan Chase & Co. cut their price target on Klarna Group from $40.00 to $20.00 and set an "overweight" rating for the company in a research note on Friday, February 20th. Morgan Stanley cut their price target on Klarna Group from $39.00 to $23.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 18th. UBS Group dropped their price objective on shares of Klarna Group from $46.00 to $20.00 and set a "buy" rating for the company in a report on Friday, February 20th. Bank of America started coverage on shares of Klarna Group in a report on Thursday, March 5th. They set a "buy" rating and a $21.00 price objective for the company. Finally, Wall Street Zen downgraded shares of Klarna Group from a "hold" rating to a "sell" rating in a report on Tuesday, March 31st. Eleven research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $36.94.

Klarna Group Stock Performance

Shares of KLAR stock opened at $14.56 on Wednesday. Klarna Group has a 52-week low of $12.06 and a 52-week high of $57.20. The firm has a market capitalization of $5.49 billion and a PE ratio of -18.90. The stock has a fifty day simple moving average of $14.37 and a two-hundred day simple moving average of $25.58.

Klarna Group (NYSE:KLAR - Get Free Report) last issued its quarterly earnings results on Saturday, February 14th. The company reported ($0.12) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.09). Klarna Group had a negative return on equity of 11.62% and a negative net margin of 8.41%.The business had revenue of $0.87 million during the quarter. The firm's revenue for the quarter was up 38.5% on a year-over-year basis. On average, sell-side analysts forecast that Klarna Group will post 0.05 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Global Retirement Partners LLC lifted its holdings in shares of Klarna Group by 800.0% in the 4th quarter. Global Retirement Partners LLC now owns 900 shares of the company's stock valued at $26,000 after acquiring an additional 800 shares during the last quarter. Leonteq Securities AG bought a new position in shares of Klarna Group in the 4th quarter valued at about $29,000. US Bancorp DE bought a new position in shares of Klarna Group in the 3rd quarter valued at about $30,000. BIT Capital GmbH bought a new position in shares of Klarna Group in the 3rd quarter valued at about $37,000. Finally, Allworth Financial LP bought a new position in shares of Klarna Group in the 3rd quarter valued at about $37,000.

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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