Klarna Group (NYSE:KLAR) Price Target Raised to $21.00

Key Points

• Goldman Sachs raised Klarna’s price target from $19 to $21 and kept a buy rating, implying about 40.8% upside from the current share price.
• Klarna stock fell 9.4% to $14.92 even after the company reported its first quarterly profit since listing, with revenue up 42.7% year over year to $1.01 billion and earnings beating estimates.
• Analysts remain mixed but generally constructive: the consensus rating is Moderate Buy with a consensus target of $33.41, though several firms recently adjusted targets lower or maintained cautious stances.

Klarna Group (NYSE:KLAR - Get Free Report) had its price target hoisted by equities research analysts at The Goldman Sachs Group from $19.00 to $21.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. The Goldman Sachs Group's target price would indicate a potential upside of 40.79% from the stock's current price.

Other equities research analysts also recently issued research reports about the company. Wells Fargo & Company dropped their target price on Klarna Group from $32.00 to $26.00 and set an "overweight" rating on the stock in a research report on Friday. UBS Group lowered their price objective on Klarna Group from $46.00 to $20.00 and set a "buy" rating on the stock in a research report on Friday, February 20th. BMO Capital Markets increased their target price on Klarna Group from $16.00 to $17.00 and gave the company a "market perform" rating in a research note on Friday. TD Cowen began coverage on Klarna Group in a research note on Monday. They issued a "hold" rating and a $16.00 target price on the stock. Finally, Wall Street Zen raised Klarna Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Eleven analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $33.41.

Klarna Group Trading Down 9.4%

KLAR stock traded down $1.55 during trading on Friday, reaching $14.92. 7,961,476 shares of the stock were exchanged, compared to its average volume of 5,921,329. The firm has a market cap of $5.63 billion and a P/E ratio of -19.40. Klarna Group has a twelve month low of $12.06 and a twelve month high of $57.20. The firm's 50 day moving average is $13.98 and its 200 day moving average is $23.02.

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

Hedge Funds Weigh In On Klarna Group

Large investors have recently made changes to their positions in the business. Compagnie Lombard Odier SCmA raised its holdings in Klarna Group by 43.5% in the 4th quarter. Compagnie Lombard Odier SCmA now owns 1,650 shares of the company's stock worth $48,000 after acquiring an additional 500 shares during the last quarter. TD Waterhouse Canada Inc. grew its position in Klarna Group by 44.3% in the 4th quarter. TD Waterhouse Canada Inc. now owns 1,659 shares of the company's stock worth $48,000 after purchasing an additional 509 shares during the period. Caitong International Asset Management Co. Ltd grew its position in Klarna Group by 19.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,053 shares of the company's stock worth $117,000 after purchasing an additional 665 shares during the period. Global Retirement Partners LLC grew its position in shares of Klarna Group by 800.0% during 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 period. Finally, US Bancorp DE bought a new stake in shares of Klarna Group during the 3rd quarter valued at $30,000.

Key Stories Impacting Klarna Group

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

• Positive Sentiment: Klarna delivered its first quarterly profit since listing, reporting adjusted operating profit of $68 million and net income of about $1 million, while revenue rose 44% year over year to $1.01 billion and beat expectations. The results also showed strong growth in gross merchandise volume and network expansion, which supports the case for improving profitability. Business Wire article
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target on Klarna to $26 and reiterated an outperform rating, signaling confidence in further upside after the earnings beat. Benzinga article
• Positive Sentiment: Wells Fargo also cut its target to $26 from $32 but kept an overweight rating, suggesting analysts still see substantial upside despite the lower valuation target. Benzinga article
• Neutral Sentiment: BMO Capital Markets lifted its target to $17 from $16 but maintained a market perform rating, indicating a more cautious stance than the other upgrades. Benzinga article
• Neutral Sentiment: Options activity surged, with call volume rising well above normal, which may reflect speculation around continued momentum after the earnings release. MarketBeat article

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.