Klarna Group (NYSE:KLAR) Price Target Lowered to $16.00 at Barclays

Key Points

• Barclays cut Klarna’s price target from $20 to $16 while maintaining an “equal weight” rating, implying approximately 9.6% upside from the stock’s $14.60 price.
• Klarna reported quarterly adjusted EPS of $0.01, beating expectations for a loss, while revenue increased 26.6% year over year to $1.04 billion.
• Analyst sentiment remains mixed: MarketBeat lists a consensus “Hold” rating and a $31.56 target, but Klarna’s lowered 2026 outlook, weaker European demand and planned executive departures add pressure to the stock.

Klarna Group (NYSE:KLAR - Get Free Report) had its price objective lowered by investment analysts at Barclays from $20.00 to $16.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Barclays's target price points to a potential upside of 9.56% from the company's current price.

Other research analysts also recently issued research reports about the company. BMO Capital Markets lifted their price target on Klarna Group from $17.00 to $19.00 and gave the stock a "market perform" rating in a research note on Tuesday, June 23rd. The Goldman Sachs Group raised their target price on shares of Klarna Group from $21.00 to $25.00 and gave the company a "buy" rating in a report on Thursday, July 9th. TD Cowen lifted their target price on shares of Klarna Group from $17.00 to $19.00 and gave the stock a "hold" rating in a research report on Tuesday, July 7th. Morgan Stanley upped their price target on shares of Klarna Group from $18.00 to $21.00 and gave the company an "equal weight" rating in a report on Friday, August 14th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Klarna Group in a research report on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Klarna Group has an average rating of "Hold" and a consensus price target of $31.56.

Klarna Group Price Performance

NYSE KLAR opened at $14.60 on Wednesday. The business has a 50 day moving average price of $18.93 and a 200 day moving average price of $16.73. The company has a market capitalization of $5.51 billion and a P/E ratio of -27.99. Klarna Group has a 1-year low of $12.06 and a 1-year high of $57.20.

Klarna Group (NYSE:KLAR - Get Free Report) last posted its earnings results on Friday, August 14th. The company reported $0.01 EPS for the quarter, topping analysts' consensus estimates of ($0.06) by $0.07. The company 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 for the quarter was up 26.6% compared to the same quarter last year. On average, research analysts expect that Klarna Group will post 0.05 earnings per share for the current fiscal year.

Institutional Trading of Klarna Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KLAR. Public Employees Retirement System of Ohio acquired a new position in Klarna Group in the 2nd quarter valued at about $368,000. BlackRock Inc. lifted its holdings in Klarna Group by 89.6% in the 2nd quarter. BlackRock Inc. now owns 5,698,353 shares of the company's stock valued at $115,335,000 after purchasing an additional 2,693,374 shares in the last quarter. Deutsche Bank AG boosted its stake in shares of Klarna Group by 4,315.4% during the 2nd quarter. Deutsche Bank AG now owns 146,943 shares of the company's stock worth $2,974,000 after purchasing an additional 143,615 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Klarna Group by 443.0% during the second quarter. Bank of New York Mellon Corp now owns 130,929 shares of the company's stock worth $2,650,000 after buying an additional 106,818 shares in the last quarter. Finally, Russell Investments Group Ltd. acquired a new position in shares of Klarna Group in the second quarter valued at approximately $606,000.

Trending Headlines about Klarna Group

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

• Positive Sentiment: Klarna reported second-quarter adjusted earnings of $0.01 per share, beating consensus estimates for a loss, while revenue rose 27% year over year to $1.042 billion. GMV increased 18% to $36.6 billion, transaction margin dollars climbed 42%, and adjusted operating income more than tripled to $91 million. Klarna Reports Second Quarter 2026 Results
• Positive Sentiment: Growth in the U.S., broader use of Klarna’s card and services, and a 24% increase in revenue per active consumer indicate deeper customer engagement beyond traditional “pay-in-four” transactions. Klarna Card Users Hit 6.5 Million But Stock Plunges on Lower Outlook
• Neutral Sentiment: JPMorgan reaffirmed its “neutral” rating but lowered its price target to $18 from $22. The target still implies upside from the stock’s recent level, but the reduction reflects increased concerns about growth and execution. JPMorgan Klarna Rating Update
• Negative Sentiment: Klarna cut its full-year 2026 revenue outlook to $4.1 billion-$4.2 billion, below the roughly $4.4 billion analyst consensus, and reduced its volume outlook. Third-quarter revenue guidance of $940 million-$980 million also trails expectations of approximately $1.1 billion. Softer European demand, particularly in Germany, and foreign-exchange pressure are key factors. Klarna Trims Volume Outlook
• Negative Sentiment: The planned departures of Chief Financial Officer Niclas Neglén and Chief Marketing Officer David Sandström in early 2027 add leadership-transition risk at a time when investors are already questioning Klarna’s growth trajectory. Klarna Announces Planned CFO and CMO Transitions

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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