Wells Fargo & Company Issues Pessimistic Forecast for Klarna Group (NYSE:KLAR) Stock Price

Key Points

• Wells Fargo cut its price target on Klarna Group from $32 to $26, though it kept an overweight rating. The new target still implies about 63.6% upside from the prior close.
• Analyst sentiment remains mixed: several firms have recently lowered targets, while the overall consensus is still a Moderate Buy with an average price target of $35.41.
• Klarna’s latest earnings showed improving fundamentals, with revenue of $1.01 billion and a small profit for the quarter, beating analyst expectations and marking its first quarterly profit since listing.

Klarna Group (NYSE:KLAR - Get Free Report) had its price target cut by Wells Fargo & Company from $32.00 to $26.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has an "overweight" rating on the stock. Wells Fargo & Company's price objective suggests a potential upside of 63.59% from the stock's previous close.

Other equities analysts have also recently issued research reports about the company. JPMorgan Chase & Co. lowered their target price on Klarna Group from $40.00 to $20.00 and set an "overweight" rating on the stock in a research note on Friday, February 20th. Bank of America began coverage on shares of Klarna Group in a research note on Thursday, March 5th. They issued a "buy" rating and a $21.00 price objective for the company. TD Cowen initiated coverage on shares of Klarna Group in a research report on Monday. They set a "hold" rating and a $16.00 target price on the stock. Morgan Stanley reduced their price target on Klarna Group from $39.00 to $23.00 and set an "equal weight" rating for the company in a research report on Wednesday, February 18th. Finally, 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 report on Friday, February 20th. Eleven research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $35.41.

Klarna Group Stock Performance

NYSE:KLAR opened at $15.89 on Friday. The company has a market capitalization of $6.00 billion and a price-to-earnings ratio of -20.56. Klarna Group has a one year low of $12.06 and a one year high of $57.20. The stock has a 50-day simple moving average of $13.98 and a 200 day simple moving average of $23.02.

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

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. US Bancorp DE acquired a new stake in shares of Klarna Group in the third quarter worth $30,000. Global Retirement Partners LLC raised its stake in 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 purchasing an additional 800 shares during the last quarter. BIT Capital GmbH bought a new stake in Klarna Group in the 3rd quarter valued at $37,000. Allworth Financial LP acquired a new stake in Klarna Group in the 3rd quarter worth $37,000. Finally, Leonteq Securities AG bought a new position in shares of Klarna Group during the 4th quarter worth about $29,000.

Key Stories Impacting Klarna Group

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

• Positive Sentiment: Klarna reported its first quarterly profit since listing, with adjusted operating profit of $68 million and net income of $1 million, signaling improving earnings momentum. Klarna Delivers Strong Start to 2026 With $1Bn Revenue and $68M Adj. Operating Profit
• Positive Sentiment: Revenue topped $1.0 billion, up 44% year over year, while gross merchandise volume reached $33.7 billion, both well above expectations and supportive of the stock’s rebound. Klarna Q1 Earnings Beat Estimates on Strong GMV & Network Expansion
• Positive Sentiment: The company beat analyst estimates on both EPS and revenue, helping reinforce the view that Klarna’s business is scaling more efficiently. Klarna earnings report and conference call
• Positive Sentiment: BMO Capital Markets raised its price target on KLAR to $17 from $16, indicating some analyst confidence remains after the earnings beat, even though the rating stayed at “market perform.” BMO price target raise
• Neutral Sentiment: There was also unusually heavy call option activity, suggesting traders are positioning for more upside, though this does not by itself change fundamentals.
• Neutral Sentiment: Guidance was updated for the second quarter, but the provided details were limited, so the market is likely focusing more on the earnings beat and profit milestone.

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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