Morgan Stanley Cuts Klarna Group (NYSE:KLAR) Price Target to $23.00

Klarna Group (NYSE:KLAR) had its price target reduced by Morgan Stanley from $39.00 to $23.00 in a report published on Wednesday,Benzinga reports. They currently have an equal weight rating on the stock.

A number of other brokerages have also recently weighed in on KLAR. Bank of America decreased their price target on shares of Klarna Group from $51.00 to $46.00 and set a “buy” rating for the company in a research note on Tuesday, November 18th. Wall Street Zen raised shares of Klarna Group from a “sell” rating to a “hold” rating in a report on Saturday, January 31st. Wolfe Research lowered their price target on Klarna Group from $50.00 to $45.00 and set an “outperform” rating on the stock in a report on Wednesday, November 19th. UBS Group reduced 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, Citigroup decreased their price objective on Klarna Group from $58.00 to $45.00 and set a “buy” rating for the company in a research report on Thursday, November 20th. Eleven research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $40.00.

Klarna Group Price Performance

KLAR stock opened at $13.04 on Wednesday. The firm has a market capitalization of $9.36 billion and a P/E ratio of -16.93. The company has a 50 day moving average price of $26.04. Klarna Group has a twelve month low of $13.00 and a twelve month high of $57.20.

Institutional Trading of Klarna Group

A number of institutional investors have recently modified their holdings of the business. Robeco Institutional Asset Management B.V. purchased a new position in Klarna Group in the third quarter worth $2,199,000. SG Americas Securities LLC acquired a new position in shares of Klarna Group during the 3rd quarter worth $868,000. Walmart Inc. purchased a new position in shares of Klarna Group in the 3rd quarter valued at about $87,960,000. Sumitomo Mitsui Trust Group Inc. acquired a new stake in shares of Klarna Group in the third quarter valued at about $19,406,000. Finally, Wealth Enhancement Advisory Services LLC purchased a new stake in Klarna Group during the third quarter worth about $295,000.

Klarna Group News Roundup

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

• Positive Sentiment: Klarna delivered its first $1 billion revenue quarter (Q4 revenue ~$1.08B) and reported strong GMV and U.S. growth — evidence the business is scaling its payments + banking strategy. Klarna Accelerates U.S. Growth and Delivers $1bn Revenue
• Positive Sentiment: Klarna more than doubled its banking customers (to ~15.8M) and is converting checkout activity into deposits and card usage — a structural growth signal for lifetime customer value and cross-sell. Klarna Converts Checkout Traffic Into $13 Billion in Deposits
• Neutral Sentiment: Klarna filed its 2025 earnings presentation with U.S. regulators (slides/transcript available) — useful for digging into guidance, credit metrics and segment detail but no surprise in itself. Klarna Group Files 2025 Earnings Presentation with U.S. Regulators
• Negative Sentiment: Profitability disappointed: Q4 EPS missed materially (reported loss ~$0.18 vs. consensus around -$0.03) and the company swung to a net loss — investors punished the miss despite revenue strength. Klarna Group plc (KLAR) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Rising credit costs and a softer near-term outlook amplified concerns; Q1 revenue guidance ($900M–$980M) sits near consensus but credit reserve trajectory is the key risk for earnings recovery. Stock Market Today: Klarna shares plunge after Q4 results miss
• Negative Sentiment: Multiple brokerages cut price targets (JPMorgan, UBS, Keefe, Wells Fargo among others), lowering the near-term upside and signaling increased uncertainty about recovery timing. Analyst Price Target Updates
• Negative Sentiment: Several securities law firms have filed or issued lead-plaintiff reminders in class-action suits tied to Klarna’s IPO and disclosures — added legal overhang and potential litigation costs heighten investor risk. Bronstein, Gewirtz & Grossman LLC Urges Klarna Group plc Investors to Act

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.