Wells Fargo & Company Lowers Klarna Group (NYSE:KLAR) Price Target to $21.00

Key Points

• Wells Fargo lowered Klarna’s price target to $21 from $26 while maintaining an “overweight” rating, implying roughly 43% upside from the prior close.
• Klarna reported quarterly adjusted EPS of $0.01, beating the expected $0.06 loss, while revenue increased 26.6% year over year to $1.04 billion.
• Despite the earnings beat, Klarna reduced its 2026 revenue outlook below analyst expectations, citing softer European demand and foreign-exchange pressure; planned CFO and CMO departures also add leadership-transition risk.

Klarna Group (NYSE:KLAR - Get Free Report) had its price objective lowered by Wells Fargo & Company from $26.00 to $21.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Wells Fargo & Company's price target would suggest a potential upside of 42.95% from the company's previous close.

KLAR has been the topic of a number of other reports. The Goldman Sachs Group boosted their price target on Klarna Group from $21.00 to $25.00 and gave the company a "buy" rating in a report on Thursday, July 9th. Citizens Jmp began coverage on Klarna Group in a research report on Tuesday, June 30th. They issued a "market perform" rating on the stock. TD Cowen boosted their target price on Klarna Group from $17.00 to $19.00 and gave the company a "hold" rating in a research note on Tuesday, July 7th. Keefe, Bruyette & Woods lifted their price objective on shares of Klarna Group from $22.00 to $26.00 and gave the company an "outperform" rating in a report on Friday, May 15th. Finally, JPMorgan Chase & Co. reissued a "neutral" rating and issued a $18.00 price objective (down from $22.00) on shares of Klarna Group in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $31.78.

Klarna Group Stock Performance

Shares of KLAR stock opened at $14.69 on Wednesday. Klarna Group has a 52 week low of $12.06 and a 52 week high of $57.20. The company's 50 day moving average price is $18.93 and its two-hundred day moving average price is $16.73. The company has a market capitalization of $5.55 billion and a P/E ratio of -28.55.

Klarna Group (NYSE:KLAR - Get Free Report) last issued its quarterly earnings data on Friday, August 14th. The company reported $0.01 EPS for the quarter, topping analysts' consensus estimates of ($0.06) by $0.07. The business had revenue of $1.04 billion for the quarter. Klarna Group had a negative net margin of 5.21% and a negative return on equity of 7.62%. The business's revenue for the quarter was up 26.6% compared to the same quarter last year. Analysts forecast that Klarna Group will post 0.05 earnings per share for the current year.

Institutional Investors Weigh In On Klarna Group

Several large investors have recently made changes to their positions in the stock. Commonwealth Bank of Australia bought a new position in Klarna Group during the fourth quarter worth about $503,243,000. Wellington Management Group LLP acquired a new stake in shares of Klarna Group in the third quarter valued at approximately $348,834,000. BlackRock Inc. boosted its stake in shares of Klarna Group by 89.6% during the 2nd quarter. BlackRock Inc. now owns 5,698,353 shares of the company's stock worth $115,335,000 after acquiring an additional 2,693,374 shares during the period. Scge Management L.P. acquired a new position in shares of Klarna Group during the 3rd quarter worth approximately $193,018,000. Finally, MIC Capital Management UK LLP bought a new stake in Klarna Group in the 3rd quarter valued at $99,502,000.

Key Stories Impacting Klarna Group

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

• Positive Sentiment: Klarna reported second-quarter adjusted earnings of $0.01 per share, beating consensus estimates for a loss, while revenue rose 27% year over year to $1.042 billion. GMV increased 18% to $36.6 billion, transaction margin dollars climbed 42%, and adjusted operating income more than tripled to $91 million. Klarna Reports Second Quarter 2026 Results
• Positive Sentiment: Growth in the U.S., broader use of Klarna’s card and services, and a 24% increase in revenue per active consumer indicate deeper customer engagement beyond traditional “pay-in-four” transactions. Klarna Card Users Hit 6.5 Million But Stock Plunges on Lower Outlook
• Neutral Sentiment: JPMorgan reaffirmed its “neutral” rating but lowered its price target to $18 from $22. The target still implies upside from the stock’s recent level, but the reduction reflects increased concerns about growth and execution. JPMorgan Klarna Rating Update
• Negative Sentiment: Klarna cut its full-year 2026 revenue outlook to $4.1 billion-$4.2 billion, below the roughly $4.4 billion analyst consensus, and reduced its volume outlook. Third-quarter revenue guidance of $940 million-$980 million also trails expectations of approximately $1.1 billion. Softer European demand, particularly in Germany, and foreign-exchange pressure are key factors. Klarna Trims Volume Outlook
• Negative Sentiment: The planned departures of Chief Financial Officer Niclas Neglén and Chief Marketing Officer David Sandström in early 2027 add leadership-transition risk at a time when investors are already questioning Klarna’s growth trajectory. Klarna Announces Planned CFO and CMO Transitions

About Klarna Group

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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