Morgan Stanley Cuts Klarna Group (NYSE:KLAR) Price Target to $17.00

Klarna Group (NYSE:KLAR) had its price target cut by investment analysts at Morgan Stanley from $21.00 to $17.00 in a note issued to investors on Wednesday,Benzinga reports. The firm currently has an “equal weight” rating on the stock. Morgan Stanley’s price objective would suggest a potential upside of 16.19% from the company’s previous close.

Other equities analysts have also recently issued reports about the stock. TD Cowen cut their target price on shares of Klarna Group from $19.00 to $18.00 and set a “hold” rating on the stock in a report on Wednesday. The Goldman Sachs Group upped their target price on shares of Klarna Group from $21.00 to $25.00 and gave the company a “buy” rating in a report on Thursday, July 9th. Freedom Capital raised Klarna Group to a “strong-buy” rating in a report on Wednesday, June 24th. Barclays reduced their price objective on Klarna Group from $20.00 to $16.00 and set an “equal weight” rating for the company in a research note on Wednesday. Finally, Zacks Research downgraded Klarna Group from a “strong-buy” rating to a “hold” rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $31.06.

Klarna Group Stock Down 2.8%

KLAR traded down $0.43 on Wednesday, reaching $14.63. The company had a trading volume of 9,940,298 shares, compared to its average volume of 5,663,403. The stock has a 50-day moving average price of $18.93 and a 200-day moving average price of $16.73. The stock has a market capitalization of $5.52 billion and a PE ratio of -28.16. 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 earnings results on Friday, August 14th. The company reported $0.01 earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.07. The business had revenue of $1.04 billion during the quarter. Klarna Group had a negative return on equity of 7.62% and a negative net margin of 5.21%.Klarna Group’s quarterly revenue was up 26.6% on a year-over-year basis. As a group, analysts expect that Klarna Group will post 0.05 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Klarna Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Commonwealth Bank of Australia bought a new stake in shares of Klarna Group during the 4th quarter valued at $503,243,000. Wellington Management Group LLP acquired a new stake in Klarna Group during the third quarter worth about $348,834,000. Scge Management L.P. acquired a new position in shares of Klarna Group in the 3rd quarter valued at approximately $193,018,000. MIC Capital Management UK LLP bought a new position in Klarna Group in the third quarter valued at approximately $99,502,000. Finally, BlackRock Inc. lifted its stake in Klarna Group by 89.6% during the second quarter. BlackRock Inc. now owns 5,698,353 shares of the company’s stock worth $115,335,000 after purchasing an additional 2,693,374 shares during the last quarter.

Key Headlines Impacting Klarna Group

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

• Positive Sentiment: Q2 results exceeded expectations: Klarna reported revenue of $1.042 billion, up 27% year over year, and earnings of $0.01 per share versus analyst estimates for a loss. Gross merchandise volume rose 18% to $36.6 billion, while adjusted operating income increased 214% to $91 million. Klarna Reports Second Quarter 2026 Results
• Positive Sentiment: The company said consumer engagement is deepening, with more than 120 million users and revenue per active consumer up 24%. Klarna also raised or maintained its profitability outlook, supporting the view that margin economics are improving. Klarna Card Users Hit 6.5 Million But Stock Plunges on Lower Outlook
• Neutral Sentiment: Klarna announced planned early-2027 transitions for CFO Niclas Neglén and CMO David Sandström. Both executives will remain during the handover, but the leadership changes add an execution consideration for investors. Klarna Announces Planned CFO and CMO Transitions
• Negative Sentiment: 2026 guidance missed expectations: Klarna forecast full-year revenue of $4.1 billion to $4.2 billion, below the roughly $4.4 billion consensus estimate. Third-quarter revenue guidance of $940 million to $980 million also trailed expectations of about $1.1 billion. Softer European volumes, German consumer weakness and foreign-exchange effects were cited as key pressures. Klarna posts Q2 profit, revenue growth, trims volume outlook
• Negative Sentiment: Analysts responded by cutting targets: BMO lowered its target to $15 and moved to Market Perform; Barclays cut to $16 and Equal Weight; TD Cowen reduced its target to $18 and Hold; Wells Fargo lowered its target to $21 while retaining Overweight; and JPMorgan reduced its target to $18 and maintained Neutral. The revisions reinforce concerns about slower near-term growth.

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.