Klarna Group (NYSE:KLAR) Price Target Cut to $26.00 by Analysts at Wells Fargo & Company

Klarna Group (NYSE:KLAR) had its price target cut by Wells Fargo & Company from $32.00 to $26.00 in a research note published on Friday morning,Benzinga reports. They currently have an overweight rating on the stock.

Other equities research analysts also recently issued research reports about the company. JPMorgan Chase & Co. dropped their target price on Klarna Group from $40.00 to $20.00 and set an “overweight” rating for the company in a research report on Friday, February 20th. Wall Street Zen upgraded Klarna Group from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. TD Cowen assumed coverage on Klarna Group in a research report on Monday, May 11th. They set a “hold” rating and a $16.00 target price for the company. UBS Group dropped their target price on Klarna Group from $46.00 to $20.00 and set a “buy” rating for the company in a research report on Friday, February 20th. Finally, BMO Capital Markets raised their price objective on shares of Klarna Group from $16.00 to $17.00 and gave the company a “market perform” rating in a research note on Friday. Eleven equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $33.41.

Klarna Group Stock Performance

Klarna Group stock opened at $15.19 on Friday. The firm has a market cap of $5.73 billion and a P/E ratio of -29.20. The business’s fifty day moving average is $14.01 and its two-hundred day moving average is $22.96. Klarna Group has a 52 week low of $12.06 and a 52 week high of $57.20.

Klarna Group (NYSE:KLAR) last released its earnings results on Thursday, May 14th. The company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.12. The company had revenue of $839.00 million during the quarter, compared to the consensus estimate of $940.90 million. Klarna Group had a negative return on equity of 7.64% and a negative net margin of 5.21%.The business’s revenue was up 42.7% on a year-over-year basis. On average, equities research analysts predict that Klarna Group will post -0.12 earnings per share for the current year.

Institutional Investors Weigh In On Klarna Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Global Retirement Partners LLC increased its holdings in 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 last quarter. Leonteq Securities AG bought a new stake in Klarna Group in the fourth quarter valued at about $29,000. US Bancorp DE bought a new stake in Klarna Group in the third quarter valued at about $30,000. BIT Capital GmbH bought a new stake in Klarna Group in the third quarter valued at about $37,000. Finally, Allworth Financial LP bought a new stake in Klarna Group in the third quarter valued at about $37,000.

Klarna Group News Summary

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

• Positive Sentiment: Klarna posted its first quarterly profit since listing, with Q1 revenue rising about 44% year over year to roughly $1.0 billion and adjusted operating profit of $68 million, signaling improving unit economics and stronger business momentum. BusinessWire earnings release
• Positive Sentiment: The company beat EPS expectations, reporting a loss of just $0.01 per share versus forecasts for a much larger loss, which suggests earnings are improving faster than analysts expected. Zacks earnings summary
• Positive Sentiment: Management said gross merchandise volume reached $33.7 billion and that the consumer/merchant network continues to expand, supporting the growth story behind Klarna’s buy-now-pay-later platform. PYMNTS article
• Positive Sentiment: Several Wall Street firms turned more constructive, with Goldman Sachs raising its target to $21, Keefe, Bruyette & Woods lifting its target to $26, and BMO also nudging its target higher, reinforcing investor confidence after the earnings beat. Benzinga analyst roundup
• Neutral Sentiment: One analyst, Wells Fargo, lowered its price target to $26, but kept an overweight rating, so the change was not a clear bearish signal. Benzinga analyst update
• Negative Sentiment: Revenue came in below consensus at $839 million versus expectations near $941 million, and the stock had already been under pressure earlier in the week before the earnings-driven rebound. MarketBeat stock data

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.