Keefe, Bruyette & Woods Has Lowered Expectations for Klarna Group (NYSE:KLAR) Stock Price

Klarna Group (NYSE:KLAR) had its target price dropped by Keefe, Bruyette & Woods from $26.00 to $21.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Keefe, Bruyette & Woods’ price target points to a potential upside of 44.93% from the stock’s previous close.

Other equities analysts have also recently issued reports about the company. Wall Street Zen upgraded Klarna Group from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. UBS Group raised their price target on shares of Klarna Group from $20.00 to $23.00 and gave the stock a “buy” rating in a report on Wednesday, July 8th. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $18.00 price objective (down from $22.00) on shares of Klarna Group in a report on Wednesday. Zacks Research downgraded Klarna Group from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, August 5th. Finally, Freedom Capital upgraded Klarna Group to a “strong-buy” rating in a report on Wednesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $30.78.

Klarna Group Trading Up 3.5%

KLAR stock traded up $0.49 during midday trading on Friday, hitting $14.49. The stock had a trading volume of 4,635,210 shares, compared to its average volume of 5,768,825. The firm has a market cap of $5.47 billion and a P/E ratio of -39.16. The business has a fifty day moving average price of $18.87 and a two-hundred day moving average price of $16.60. Klarna Group has a 1-year low of $12.06 and a 1-year high of $57.20.

Klarna Group (NYSE:KLAR) last posted its quarterly earnings data on Friday, August 14th. The company reported $0.01 earnings per share for the quarter, topping the consensus estimate of ($0.06) by $0.07. Klarna Group had a negative return on equity of 5.39% and a negative net margin of 3.54%.The firm had revenue of $1.04 billion during the quarter. Klarna Group’s revenue was up 26.6% on a year-over-year basis. On average, equities analysts anticipate that Klarna Group will post 0.05 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Global Retirement Partners LLC raised its position in Klarna Group by 800.0% in the 4th quarter. Global Retirement Partners LLC now owns 900 shares of the company’s stock valued at $26,000 after buying an additional 800 shares during the last quarter. Leonteq Securities AG purchased a new stake in shares of Klarna Group in the fourth quarter valued at about $29,000. US Bancorp DE purchased a new position in Klarna Group during the third quarter worth about $30,000. CWM LLC increased its stake 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. lifted its position in shares of Klarna Group by 44.3% during the 4th quarter. TD Waterhouse Canada Inc. now owns 1,659 shares of the company’s stock worth $48,000 after buying an additional 509 shares in the last quarter.

Key Klarna Group News

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

• Positive Sentiment: Klarna will present at Goldman Sachs’ Communacopia + Technology Conference in September. The event may give management an opportunity to address the revised outlook, U.S. growth and profitability. Klarna to Present at Upcoming Investor Conference
• Positive Sentiment: Citi initiated or reiterated a Buy view on Klarna, providing a more bullish counterpoint to the recent analyst downgrades. Klarna Receives a Buy from Citi
• Positive Sentiment: Management raised its 2026 transaction-margin-dollar outlook despite lowering gross merchandise volume expectations. Softer German spending is being partly offset by stronger U.S. growth and higher margins. Klarna Q2 Earnings Call Balances Softer GMV With Higher Margins
• Neutral Sentiment: JPMorgan maintained a Neutral rating, signaling that the bank sees a balance between Klarna’s growth opportunity and near-term execution risks. JPMorgan Reiterates Neutral Rating
• Negative Sentiment: Klarna cut its 2026 outlook and announced leadership changes, triggering a sharp selloff. Concerns center on slower GMV, weak German consumer activity and reduced confidence in near-term growth. Klarna Cuts 2026 Outlook and Announces Leadership Changes
• Negative Sentiment: Barclays, TD Cowen and Morgan Stanley lowered their expectations or price targets; TD Cowen’s target is now $18 and Morgan Stanley’s is $17. The revisions reinforce concerns about valuation and execution. TD Cowen Lowers Klarna Price Target
• Negative Sentiment: A broader rotation away from buy-now-pay-later fintech stocks toward established financial companies is weighing on Klarna and could limit a sustained recovery. Rotation in BNPL Stocks

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.