Morgan Stanley Has Lowered Expectations for Klarna Group (NYSE:KLAR) Stock Price

Klarna Group (NYSE:KLAR) had its target price cut by stock analysts at Morgan Stanley from $39.00 to $23.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has an “equal weight” rating on the stock. Morgan Stanley’s price target suggests a potential upside of 19.60% from the stock’s previous close.

A number of other research analysts have also recently issued reports on KLAR. Wall Street Zen raised shares of Klarna Group from a “sell” rating to a “hold” rating in a research note on Saturday, January 31st. Weiss Ratings reiterated a “sell (e+)” rating on shares of Klarna Group in a research note on Monday, December 29th. Wolfe Research dropped their price objective on Klarna Group from $50.00 to $45.00 and set an “outperform” rating for the company in a research report on Wednesday, November 19th. Wells Fargo & Company initiated coverage on Klarna Group in a research report on Wednesday, October 22nd. They issued an “overweight” rating and a $45.00 target price on the stock. Finally, Citigroup dropped their target price on shares of Klarna Group from $58.00 to $45.00 and set a “buy” rating for the company in a report on Thursday, November 20th. Eleven investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Klarna Group currently has an average rating of “Moderate Buy” and a consensus price target of $45.53.

Klarna Group Stock Up 6.2%

Shares of NYSE KLAR opened at $19.23 on Wednesday. Klarna Group has a 52 week low of $17.74 and a 52 week high of $57.20. The stock has a fifty day moving average of $27.03. The company has a market capitalization of $13.80 billion and a PE ratio of -29.58.

Institutional Trading of Klarna Group

A number of hedge funds have recently made changes to their positions in KLAR. US Bancorp DE acquired a new position in shares of Klarna Group in the third quarter valued at approximately $30,000. Global Retirement Partners LLC grew its holdings in Klarna Group by 800.0% during the 4th quarter. Global Retirement Partners LLC now owns 900 shares of the company’s stock worth $26,000 after acquiring an additional 800 shares during the last quarter. BIT Capital GmbH acquired a new position in Klarna Group in the 3rd quarter valued at approximately $37,000. Allworth Financial LP bought a new position in shares of Klarna Group during the third quarter valued at $37,000. Finally, Leonteq Securities AG acquired a new position in shares of Klarna Group during the fourth quarter worth $29,000.

More Klarna Group News

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

• Positive Sentiment: Unusual options flow — traders bought ~64,250 call contracts (a ~1,251% jump vs. average), suggesting event-driven bullish wagers or hedging that can amplify intraday moves.
• Positive Sentiment: Analyst preview: Zacks expects ~18.5% revenue growth and GMV near $38B for Q4; a solid print could help stabilize the stock if credit metrics aren’t worse than feared. Zacks Q4 preview
• Neutral Sentiment: CEO comments on headcount: management expects employees to fall below 2,000 by 2030 (current ~3,000) as AI and hiring slowdowns reduce costs — long‑term efficiency play but also signals structural change. Business Insider
• Negative Sentiment: Hagens Berman highlights a securities class action alleging misstatements in Klarna’s IPO filings and points to a reported 102% spike in the credit loss provision — this directly raises concerns about credit underwriting, reserve adequacy and potential disclosure risk. Hagens Berman filing
• Negative Sentiment: Multiple law firms (Rosen, Pomerantz, Frank R. Cruz, Bernstein Liebhard, Schall, DJS, Bronstein, Faruqi & others) have filed or solicited lead‑plaintiff claims tied to the IPO with a Feb. 20 deadline — the volume of litigation notices increases legal/cost uncertainty and reputational risk. Rosen Law Firm notice

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.