UBS Group Downgrades Klarna Group (NYSE:KLAR) to Neutral

Key Points

• UBS Group downgraded Klarna Group to “neutral” from “buy” and set a $16 price target, implying 11.89% upside from the previous close.
• Analyst sentiment is mixed but leans toward caution: Klarna has a consensus “hold” rating and a $30.39 average target, while several firms recently lowered their price objectives.
• Klarna reported better-than-expected quarterly results, with $0.01 EPS versus a projected loss of $0.06 and revenue of $1.04 billion, up 26.6% year over year; however, the company remains unprofitable.

Klarna Group (NYSE:KLAR - Get Free Report) was downgraded by equities research analysts at UBS Group from a "buy" rating to a "neutral" rating in a note issued to investors on Monday, Marketbeat reports. They currently have a $16.00 price objective on the stock. UBS Group's price target suggests a potential upside of 11.89% from the company's previous close.

A number of other equities analysts also recently weighed in on KLAR. Morgan Stanley cut their price target on shares of Klarna Group from $21.00 to $17.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 19th. The Goldman Sachs Group upped their price objective on Klarna Group from $21.00 to $25.00 and gave the stock a "buy" rating in a report on Thursday, July 9th. BMO Capital Markets cut their target price on Klarna Group from $19.00 to $15.00 and set a "market perform" rating on the stock in a research report on Wednesday, August 19th. Freedom Capital upgraded Klarna Group to a "strong-buy" rating in a report on Wednesday, June 24th. Finally, Wall Street Zen raised Klarna Group from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Klarna Group currently has a consensus rating of "Hold" and a consensus target price of $30.39.

Klarna Group Price Performance

NYSE KLAR opened at $14.30 on Monday. The company has a market cap of $5.40 billion and a P/E ratio of -38.65. Klarna Group has a 12 month low of $12.06 and a 12 month high of $57.20. The company has a 50-day moving average of $18.83 and a 200-day moving average of $16.54.

Klarna Group (NYSE:KLAR - Get Free Report) last released its earnings results on Tuesday, August 18th. The company reported $0.01 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.07. Klarna Group had a negative net margin of 3.54% and a negative return on equity of 5.39%. The business had revenue of $1.04 billion for the quarter, compared to analysts' expectations of $992.56 million. Klarna Group's quarterly revenue was up 26.6% compared to the same quarter last year. As a group, equities research analysts anticipate that Klarna Group will post -0.01 EPS for the current year.

Institutional Trading of Klarna Group

A number of hedge funds have recently made changes to their positions in the company. Global Retirement Partners LLC boosted its stake in shares of Klarna Group by 800.0% in the fourth quarter. Global Retirement Partners LLC now owns 900 shares of the company's stock valued at $26,000 after purchasing an additional 800 shares during the period. Leonteq Securities AG acquired a new position in Klarna Group in the 4th quarter worth $29,000. US Bancorp DE acquired a new position in Klarna Group in the 3rd quarter worth $30,000. CWM LLC boosted its position in Klarna Group by 172.9% in the 4th quarter. CWM LLC now owns 1,498 shares of the company's stock valued at $43,000 after buying an additional 949 shares during the last quarter. Finally, TD Waterhouse Canada Inc. grew its stake in shares of Klarna Group by 44.3% during the fourth quarter. TD Waterhouse Canada Inc. now owns 1,659 shares of the company's stock valued at $48,000 after acquiring an additional 509 shares in 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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