TD Cowen Initiates Coverage on Klarna Group (NYSE:KLAR)

Key Points

• TD Cowen initiated coverage on Klarna Group with a Hold rating and a $16 price target, implying about 10.4% upside from the prior share price.
• Other analysts are mixed but generally constructive: the stock’s overall consensus is Moderate Buy, with a $35.71 average price target across coverage.
• Klarna’s latest earnings showed weaker-than-expected EPS of -$0.12 versus estimates of -$0.03, even as revenue rose 38.5% year over year; shares opened at $14.50 on Monday.

Equities researchers at TD Cowen assumed coverage on shares of Klarna Group (NYSE:KLAR - Get Free Report) in a research report issued on Monday. The firm set a "hold" rating and a $16.00 price target on the stock. TD Cowen's price target indicates a potential upside of 10.38% from the company's current price.

A number of other research analysts have also commented on the stock. BMO Capital Markets initiated coverage on shares of Klarna Group in a research note on Wednesday, April 22nd. They issued a "market perform" rating and a $16.00 price objective on the stock. Morgan Stanley lowered their price objective on shares of Klarna Group from $39.00 to $23.00 and set an "equal weight" rating on the stock in a research report on Wednesday, February 18th. Wall Street Zen raised shares of Klarna Group from a "sell" rating to a "hold" rating in a report on Saturday. Keefe, Bruyette & Woods cut their price target on shares of Klarna Group from $45.00 to $26.00 and set an "outperform" rating for the company in a report on Friday, February 20th. Finally, Wells Fargo & Company cut their price target on shares of Klarna Group from $45.00 to $32.00 and set an "overweight" rating for the company in a report on Friday, February 20th. Eleven equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $35.71.

Klarna Group Price Performance

Shares of KLAR opened at $14.50 on Monday. Klarna Group has a 1-year low of $12.06 and a 1-year high of $57.20. The stock has a market cap of $5.47 billion and a PE ratio of -18.83. The firm has a fifty day moving average price of $13.90 and a 200 day moving average price of $23.81.

Klarna Group (NYSE:KLAR - Get Free Report) last announced its quarterly earnings results on Saturday, February 14th. The company reported ($0.12) earnings per share for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.09). The company had revenue of $0.87 million during the quarter. Klarna Group had a negative net margin of 8.41% and a negative return on equity of 11.62%. Klarna Group's revenue was up 38.5% compared to the same quarter last year. As a group, equities analysts expect that Klarna Group will post 0.06 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Baader Bank Aktiengesellschaft acquired a new position in Klarna Group during the first quarter worth about $1,964,000. Amova Asset Management Americas Inc. grew its position in shares of Klarna Group by 57.8% in the first quarter. Amova Asset Management Americas Inc. now owns 1,198,554 shares of the company's stock valued at $15,701,000 after purchasing an additional 438,930 shares during the last quarter. Bastion Asset Management Inc. acquired a new stake in shares of Klarna Group in the first quarter valued at approximately $5,318,000. D.A. Davidson & CO. acquired a new stake in shares of Klarna Group in the first quarter valued at approximately $204,000. Finally, Bank of New York Mellon Corp grew its position in shares of Klarna Group by 45.8% in the first quarter. Bank of New York Mellon Corp now owns 24,111 shares of the company's stock valued at $316,000 after purchasing an additional 7,579 shares during the last quarter.

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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