Klarna Group (KLAR) stock gained Monday after several Wall Street analysts initiated coverage of the fintech firm with mostly upbeat views. Klarna stock is ahead by about 10% from its IPO price but well below the highs reached on its first trading day.
At least 14 analysts have initiated coverage of Klarna stock since late Sunday, with just 10 of the reports offering buy-equivalent calls, according to various media reports. The rest are neutral. The notes comes following the end of a traditional quiet period for companies following Klarna’s IPO last month.
On the stock market today, Klarna stock is ahead more than 2% at 41.53 in recent trades.
Klarna Stock: What Analysts Are Saying
UBS analyst Timothy Chiodo was among the list of buy calls. In a note to clients Monday, he set a price target of 48, implying 18% upside from Klarna’s price entering Monday trading.
“Klarna is a global commerce enabler focused on Buy-Now-Pay-Later (BNPL) facilitation, helping consumers extend or better manage larger purchases, mainly via e-commerce but with an opportunity in-store as well,” Chiodo wrote. “The BNPL industry offers attractive unit economics with Klarna earning an average gross profit take rate of roughly 1.1% – 1.2% of gross merchandise value. Further, Klarna’s mix is shifting toward higher take-rate parts of the market, supporting expectations for continued take-rate expansion.”
Meanwhile, Wedbush Securities analyst Scott Devitt started coverage of Klarna with an outperform, or buy, rating and a price target of 50.
“We think the risk/reward is attractive for a leading global commerce network with an early opportunity in several underpenetrated regions and further optionality to unlock incremental GMV and revenues through new partnerships and product expansion,” Devitt wrote.
Bernstein analyst Harshita Rawat took a neutral, market-perform view of Klarna. She set a price target of 45. Klarna has a “sizable” total address market, Rawat wrote, but remains a “show-me story” as the Swedish firm attempts to grow its U.S. business against rivals like Affirm…..
