Klarna Group (NYSE:KLAR) Reaches New 12-Month Low After Analyst Downgrade

Klarna Group plc (NYSE:KLAR) reached a new 52-week low during trading on Thursday after Morgan Stanley lowered their price target on the stock from $39.00 to $23.00. Morgan Stanley currently has an equal weight rating on the stock. Klarna Group traded as low as $14.62 and last traded at $14.3640, with a volume of 4744028 shares trading hands. The stock had previously closed at $18.95.

A number of other equities analysts also recently issued reports on the stock. Keefe, Bruyette & Woods cut their price target on shares of Klarna Group from $52.00 to $45.00 and set an “outperform” rating for the company in a report on Friday, January 2nd. Wells Fargo & Company began coverage on shares of Klarna Group in a research report on Wednesday, October 22nd. They set an “overweight” rating and a $45.00 price target for the company. Wall Street Zen raised Klarna Group from a “sell” rating to a “hold” rating in a research note on Saturday, January 31st. UBS Group dropped their price objective on Klarna Group from $48.00 to $46.00 and set a “buy” rating for the company in a research note on Thursday, November 20th. Finally, JPMorgan Chase & Co. decreased their target price on Klarna Group from $50.00 to $45.00 and set an “overweight” rating on the stock in a research report on Wednesday, November 19th. Eleven research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Klarna Group presently has an average rating of “Moderate Buy” and an average price target of $45.53.

Key Klarna Group News

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

• Positive Sentiment: Klarna reported its first billion-dollar revenue quarter; revenue grew ~38% to $1.082bn and GMV beat guidance, highlighting accelerating U.S. adoption of its banking services. Klarna Accelerates U.S. Growth and Delivers $1bn Revenue Driven by Rapid Banking Service Adoption
• Positive Sentiment: Company highlights faster U.S. growth and expansion of banking customers (more than doubled), supporting long-term revenue mix shift from payments to deposit/loan products. Sweden’s Klarna surpasses $1 billion in fourth-quarter revenue as US growth speeds up
• Neutral Sentiment: Unusually heavy call-option activity suggests speculative positioning and hedging interest; could amplify intraday moves but is not a fundamental signal.
• Neutral Sentiment: Klarna highlighted strategic partnerships and scaling initiatives that could improve unit economics over time; these are positive for strategy but not an immediate earnings fix. Klarna (KLAR) scaling operations through strategic partnerships
• Negative Sentiment: Profitability miss: Klarna swung to a Q4 loss (~$26m) and reported EPS of ($0.18), missing the consensus (~($0.03)), raising near-term profitability concerns. Klarna swings to $26mn loss in fourth quarter Klarna Q4 earnings / EPS miss
• Negative Sentiment: Market reaction: shares fell despite the revenue beat — investors focused on the loss, EPS miss and guidance that leaves room for disappointment. Klarna shares tumble despite Q4 revenue growth
• Negative Sentiment: Credit and reserve scrutiny: reports flag a ~102% spike in credit-loss provisions and questions about related disclosures and AI-driven workforce shifts — raises risk of future write-ups and regulatory/legal attention. Klarna Lawsuits Put Credit Loss Reserves And AI Workforce Shift Under Scrutiny
• Negative Sentiment: Analyst and target pressure: Morgan Stanley cut its price target substantially and set an “equal weight” rating, signaling reduced near-term analyst conviction. Morgan Stanley lowers Klarna price target
• Negative Sentiment: Significant legal overhang — multiple law firms have filed or are soliciting plaintiffs in securities class actions tied to Klarna’s 2025 IPO and recent disclosures; lead-plaintiff deadlines and ongoing investigations increase litigation risk and investor uncertainty. KLAR INVESTOR NOTICE: Faruqi & Faruqi, LLP Reminds Klarna Group plc (KLAR) Investors of Securities Class Action Deadline on February 20, 2026

Institutional Trading of Klarna Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. Walmart Inc. acquired a new position in Klarna Group in the 3rd quarter worth $87,960,000. WCM Investment Management LLC acquired a new position in shares of Klarna Group during the 3rd quarter worth about $16,040,000. Robeco Institutional Asset Management B.V. bought a new position in shares of Klarna Group in the 3rd quarter valued at about $2,199,000. Dragoneer Investment Group LLC acquired a new stake in shares of Klarna Group in the third quarter valued at about $303,595,000. Finally, Sumitomo Mitsui Trust Group Inc. bought a new stake in Klarna Group during the third quarter worth about $19,406,000.

Klarna Group Stock Down 23.9%

The stock’s 50-day moving average is $26.77. The company has a market capitalization of $10.35 billion and a PE ratio of -21.80.

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.