Klarna Group (NYSE:KLAR) Given New $17.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley cut Klarna’s price target from $21 to $17 while maintaining an “equal weight” rating, implying roughly 16% upside from the stock’s $14.63 price.
• Analyst sentiment is mixed: Klarna’s consensus rating is “Hold,” with 11 Hold, 10 Buy, one Strong Buy and one Sell rating. Several firms, including Barclays and BMO Capital Markets, also recently reduced their targets.
• Klarna exceeded quarterly earnings expectations, reporting $1.04 billion in revenue and $0.01 in EPS, but its full-year and third-quarter revenue guidance fell below consensus estimates, weighing on near-term growth expectations.

Klarna Group (NYSE:KLAR - Get Free Report) had its price objective reduced by equities researchers at Morgan Stanley from $21.00 to $17.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's price target points to a potential upside of 16.19% from the company's current price.

A number of other research firms have also commented on KLAR. Bank of America upped their price target on Klarna Group from $21.00 to $23.00 and gave the company a "buy" rating in a research report on Monday, May 18th. Barclays dropped 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. Zacks Research downgraded shares of Klarna Group from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 5th. The Goldman Sachs Group increased their price target on shares of Klarna Group from $21.00 to $25.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Finally, BMO Capital Markets cut their price objective on shares of Klarna Group from $19.00 to $15.00 and set a "market perform" rating for the company in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Klarna Group presently has an average rating of "Hold" and a consensus target price of $31.06.

Klarna Group Stock Down 2.8%

KLAR traded down $0.43 on Wednesday, hitting $14.63. The company's stock had a trading volume of 9,940,298 shares, compared to its average volume of 5,663,403. The firm has a market cap of $5.52 billion and a P/E ratio of -28.16. Klarna Group has a 12 month low of $12.06 and a 12 month high of $57.20. The company's 50 day simple moving average is $18.93 and its 200-day simple moving average is $16.73.

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

Institutional Trading of Klarna Group

A number of large investors have recently modified their holdings of KLAR. Global Retirement Partners LLC boosted its stake 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 buying an additional 800 shares during the period. Leonteq Securities AG acquired a new position in Klarna Group during the 4th quarter worth approximately $29,000. US Bancorp DE purchased a new stake in shares of Klarna Group in the 3rd quarter valued at approximately $30,000. CWM LLC lifted its position in shares of Klarna Group by 172.9% during the 4th quarter. CWM LLC now owns 1,498 shares of the company's stock worth $43,000 after purchasing an additional 949 shares during the last quarter. Finally, TD Waterhouse Canada Inc. increased its holdings in Klarna Group by 44.3% in the fourth quarter. TD Waterhouse Canada Inc. now owns 1,659 shares of the company's stock valued at $48,000 after buying an additional 509 shares during the last quarter.

Key Stories Impacting Klarna Group

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

• Positive Sentiment: Q2 results exceeded expectations: Klarna reported revenue of $1.042 billion, up 27% year over year, and earnings of $0.01 per share versus analyst estimates for a loss. Gross merchandise volume rose 18% to $36.6 billion, while adjusted operating income increased 214% to $91 million. Klarna Reports Second Quarter 2026 Results
• Positive Sentiment: The company said consumer engagement is deepening, with more than 120 million users and revenue per active consumer up 24%. Klarna also raised or maintained its profitability outlook, supporting the view that margin economics are improving. Klarna Card Users Hit 6.5 Million But Stock Plunges on Lower Outlook
• Neutral Sentiment: Klarna announced planned early-2027 transitions for CFO Niclas Neglén and CMO David Sandström. Both executives will remain during the handover, but the leadership changes add an execution consideration for investors. Klarna Announces Planned CFO and CMO Transitions
• Negative Sentiment: 2026 guidance missed expectations: Klarna forecast full-year revenue of $4.1 billion to $4.2 billion, below the roughly $4.4 billion consensus estimate. Third-quarter revenue guidance of $940 million to $980 million also trailed expectations of about $1.1 billion. Softer European volumes, German consumer weakness and foreign-exchange effects were cited as key pressures. Klarna posts Q2 profit, revenue growth, trims volume outlook
• Negative Sentiment: Analysts responded by cutting targets: BMO lowered its target to $15 and moved to Market Perform; Barclays cut to $16 and Equal Weight; TD Cowen reduced its target to $18 and Hold; Wells Fargo lowered its target to $21 while retaining Overweight; and JPMorgan reduced its target to $18 and maintained Neutral. The revisions reinforce concerns about slower 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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