Klarna Group (NYSE:KLAR) Rating Lowered to “Sell” at Wall Street Zen

Klarna Group (NYSE:KLAR) was downgraded by investment analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report issued on Saturday.

A number of other research firms have also weighed in on KLAR. Wells Fargo & Company decreased their price target on Klarna Group from $45.00 to $32.00 and set an “overweight” rating for the company in a research report on Friday. Bank of America dropped their target price on shares of Klarna Group from $51.00 to $46.00 and set a “buy” rating on the stock in a research report on Tuesday, November 18th. Citigroup cut their price target on shares of Klarna Group from $58.00 to $45.00 and set a “buy” rating on the stock in a report on Thursday, November 20th. Keefe, Bruyette & Woods lowered their price objective on shares of Klarna Group from $45.00 to $26.00 and set an “outperform” rating on the stock in a research report on Friday. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Klarna Group in a research note on Monday, December 29th. Eleven investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $40.00.

Klarna Group Price Performance

Shares of NYSE:KLAR opened at $13.04 on Friday. The firm has a market cap of $9.36 billion and a P/E ratio of -16.93. The firm’s fifty day moving average is $26.04. Klarna Group has a one year low of $13.00 and a one year high of $57.20.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of KLAR. Compagnie Lombard Odier SCmA raised its holdings in shares of Klarna Group by 43.5% during the fourth quarter. Compagnie Lombard Odier SCmA now owns 1,650 shares of the company’s stock worth $48,000 after acquiring an additional 500 shares during the period. TD Waterhouse Canada Inc. raised its stake in shares of Klarna Group by 44.3% in the 4th quarter. TD Waterhouse Canada Inc. now owns 1,659 shares of the company’s stock valued at $48,000 after purchasing an additional 509 shares during the period. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Klarna Group by 19.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,053 shares of the company’s stock valued at $117,000 after purchasing an additional 665 shares in the last quarter. Global Retirement Partners LLC grew its holdings in shares of Klarna Group by 800.0% during the fourth quarter. Global Retirement Partners LLC now owns 900 shares of the company’s stock worth $26,000 after buying an additional 800 shares in the last quarter. Finally, US Bancorp DE acquired a new stake in Klarna Group in the 3rd quarter valued at approximately $30,000.

Key Headlines Impacting Klarna Group

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

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.