Klarna Group plc (NYSE:KLAR) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Consensus "Moderate Buy": Nineteen analysts cover Klarna (11 buy, 7 hold, 1 sell) with an average 12‑month price target of $36.94, while shares trade around $13.72, implying significant upside per the consensus.
• Several major brokers sharply cut targets and showed caution — Morgan Stanley to $23, JPMorgan and UBS to about $20–$23 — and one firm moved to a sell rating, though Bank of America initiated coverage with a $21 buy.
• Klarna missed the quarter (EPS -$0.12 vs. -$0.03 estimate) and remains unprofitable with negative ROE and net margin despite revenue rising ~38.5% YoY, while large investors like Dragoneer (~$303.6M), Walmart (~$88M) and ARK have taken sizeable new stakes.

Klarna Group plc (NYSE:KLAR - Get Free Report) has received an average recommendation of "Moderate Buy" from the nineteen research firms that are currently covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and eleven have assigned a buy rating to the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $36.9375.

Several equities research analysts have commented on the company. Morgan Stanley dropped 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. JPMorgan Chase & Co. dropped 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. UBS Group dropped their price target on Klarna Group from $46.00 to $20.00 and set a "buy" rating for the company in a research note on Friday, February 20th. Wall Street Zen lowered Klarna Group from a "hold" rating to a "sell" rating in a research note on Tuesday, March 31st. Finally, Bank of America initiated coverage on Klarna Group in a research note on Thursday, March 5th. They issued a "buy" rating and a $21.00 target price for the company.

Institutional Investors Weigh In On Klarna Group

Large investors have recently modified their holdings of the stock. Walmart Inc. acquired a new stake in shares of Klarna Group in the third quarter valued at about $87,960,000. WCM Investment Management LLC acquired a new stake in shares of Klarna Group in the third quarter valued at about $16,040,000. Robeco Institutional Asset Management B.V. acquired a new stake in shares of Klarna Group in the third quarter valued at about $2,199,000. ARK Investment Management LLC acquired a new stake in shares of Klarna Group in the third quarter valued at about $16,922,000. Finally, Dragoneer Investment Group LLC acquired a new stake in shares of Klarna Group in the third quarter valued at about $303,595,000.

Klarna Group Price Performance

Shares of NYSE:KLAR opened at $13.72 on Friday. The firm has a market capitalization of $5.18 billion and a PE ratio of -17.82. The business has a 50-day moving average of $14.21 and a two-hundred day moving average of $25.43. Klarna Group has a 12 month low of $12.06 and a 12 month high of $57.20.

Klarna Group (NYSE:KLAR - Get Free Report) last announced its quarterly earnings results on Saturday, February 14th. The company reported ($0.12) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.09). The firm had revenue of $0.87 million for the quarter. 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 38.5% compared to the same quarter last year. As a group, research analysts anticipate that Klarna Group will post 0.05 earnings per share for the current year.

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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