Klarna Group (NYSE:KLAR) Rating Increased to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Klarna Group (NYSE:KLAR) from hold to strong-buy, adding to a generally bullish analyst backdrop for the stock. MarketBeat says the company now has a consensus rating of Moderate Buy with a consensus price target of $31.89.
• Klarna shares were down 1.8% in Tuesday trading, opening at $19.07. The stock remains well below its 52-week high of $57.20 and above its 52-week low of $12.06.
• Klarna’s latest quarterly results showed better-than-expected EPS of ($0.01) versus estimates of ($0.13), while revenue rose 42.7% year over year. Analysts currently expect the company to post $0.04 EPS for the current fiscal year.

Klarna Group (NYSE:KLAR - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other equities analysts also recently commented on KLAR. Freedom Capital upgraded shares of Klarna Group to a "strong-buy" rating in a report on Wednesday, June 24th. UBS Group boosted their target price on Klarna Group from $20.00 to $23.00 and gave the company a "buy" rating in a research report on Wednesday. TD Cowen increased their price target on Klarna Group from $17.00 to $19.00 and gave the stock a "hold" rating in a report on Tuesday. Wells Fargo & Company decreased their price target on Klarna Group from $32.00 to $26.00 and set an "overweight" rating for the company in a research note on Friday, May 15th. Finally, Barclays initiated coverage on Klarna Group in a research report on Wednesday. They issued an "equal weight" rating and a $20.00 price objective on the stock. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $31.89.

Klarna Group Trading Down 1.8%

KLAR opened at $19.07 on Tuesday. The stock has a 50-day moving average of $16.99 and a 200 day moving average of $18.79. Klarna Group has a 12 month low of $12.06 and a 12 month high of $57.20. The firm has a market cap of $7.20 billion and a P/E ratio of -36.68.

Klarna Group (NYSE:KLAR - Get Free Report) last issued its quarterly earnings results on Wednesday, May 20th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.13) by $0.12. Klarna Group had a negative return on equity of 7.62% and a negative net margin of 5.21%.Klarna Group's quarterly revenue was up 42.7% on a year-over-year basis. On average, research analysts forecast that Klarna Group will post 0.04 earnings per share for the current fiscal year.

Institutional Trading of Klarna Group

Several institutional investors and hedge funds have recently bought and sold shares of the business. US Bancorp DE purchased a new stake in shares of Klarna Group in the 3rd quarter valued at $30,000. First Trust Advisors LP acquired a new position in Klarna Group during the third quarter valued at $526,000. Russell Investments Group Ltd. purchased a new stake in Klarna Group in the third quarter valued at $19,272,000. Legal & General Group Plc acquired a new stake in Klarna Group during the 3rd quarter worth about $148,000. Finally, Capital Research Global Investors purchased a new position in shares of Klarna Group during the 3rd quarter valued at about $3,793,000.

Key Stories Impacting Klarna Group

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

• Positive Sentiment: UBS and JPMorgan both raised their price targets on Klarna, with UBS lifting its target to $23 and JPMorgan to $22, reinforcing a more constructive outlook on the stock. Klarna Group NYSE: KLAR Price Target Raised to $23.00 at UBS Group Klarna Group NYSE: KLAR Price Target Raised to $22.00 at JPMorgan Chase & Co.
• Positive Sentiment: Barclays initiated coverage with an “equal weight” rating and a $20 target, adding to the overall analyst attention around Klarna and supporting the view that the shares may still have room to rise. Klarna Group NYSE: KLAR Now Covered by Analysts at Barclays
• Positive Sentiment: Klarna’s expanded partnership with Flix increases its footprint across 21 markets in the U.S. and Europe, giving millions of travelers more ways to pay and potentially driving more transaction volume for the company. Flix and Klarna Expand Partnership to Give Millions of Travelers Across the U.S. and Europe More Ways to Pay
• Positive Sentiment: Klarna also landed a partnership with Southwest Airlines, which could widen adoption of its flexible payment options among U.S. travelers and support revenue growth. Klarna lands Southwest Airlines, bringing flexible payments to millions of US travelers this fall
• Neutral Sentiment: Coverage commentary and articles about Klarna seeking to disrupt the U.S. market and potentially become a bank highlight the company’s long-term strategy, but these are more about strategic direction than immediate financial results. Klarna seeks to disrupt US market Klarna wants to become a bank. Here’s what that could mean for millions of customers
• Neutral Sentiment: Klarna’s application for an industrial loan company charter could eventually broaden its banking capabilities, but it also introduces regulatory execution risk and is not an immediate earnings catalyst. Klarna applies for ILC charter
• Neutral Sentiment: A Zacks mention naming KLAR among mobile payments beneficiaries supports the broader theme of growing cashless commerce, but it is not company-specific news. Top Mobile Payments Stocks to Buy as Cashless Commerce Accelerates

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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