Klarna Group (NYSE:KLAR) Price Target Cut to $23.00 by Analysts at Morgan Stanley

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

A number of other equities research analysts also recently issued reports on KLAR. Citigroup reduced their price target on shares of Klarna Group from $58.00 to $45.00 and set a “buy” rating on the stock in a research note on Thursday, November 20th. Wall Street Zen upgraded Klarna Group from a “sell” rating to a “hold” rating in a research report on Saturday, January 31st. Wells Fargo & Company started coverage on Klarna Group in a research note on Wednesday, October 22nd. They issued an “overweight” rating and a $45.00 price objective for the company. Keefe, Bruyette & Woods decreased their target price on Klarna Group from $52.00 to $45.00 and set an “outperform” rating on the stock in a research note on Friday, January 2nd. Finally, JPMorgan Chase & Co. dropped their target price on Klarna Group from $50.00 to $45.00 and set an “overweight” rating for the company in a research report on Wednesday, November 19th. Eleven equities 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, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $45.53.

Klarna Group Trading Down 1.9%

NYSE KLAR opened at $18.85 on Wednesday. The stock has a market cap of $13.53 billion and a PE ratio of -29.00. Klarna Group has a twelve month low of $17.74 and a twelve month high of $57.20. The business’s fifty day simple moving average is $26.77.

Institutional Investors Weigh In On Klarna Group

Several large investors have recently bought and sold shares of KLAR. Walmart Inc. purchased a new position in Klarna Group in the third quarter valued at $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. purchased 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 during the 3rd quarter worth about $303,595,000. Finally, Sumitomo Mitsui Trust Group Inc. purchased a new stake in Klarna Group during the third quarter worth approximately $19,406,000.

Key Headlines Impacting Klarna Group

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

• Positive Sentiment: Unusual bullish options activity: traders bought ~64,250 call options on Feb. 17 (a >1,200% jump vs. average), indicating speculative/short‑term bullish interest that can amplify intraday moves.
• Neutral Sentiment: Management expects headcount to fall materially by 2030 as AI and cost cuts continue; this signals ongoing restructuring and potential margin improvement over time but also near‑term execution risk. Klarna CEO workforce comments (Business Insider)
• Negative Sentiment: Multiple law firms have filed or are soliciting lead plaintiffs in a securities‑fraud class action tied to Klarna’s Sept. 2025 IPO, with an upcoming Feb. 20 lead‑plaintiff deadline; the proliferation of filings increases legal overhang and potential liability/settlement uncertainty. Representative notices from several firms available below. Glancy Prongay Wolke & Rotter LLP notice (PR Newswire) Gross Law Firm notice (GlobeNewswire)
• Negative Sentiment: Allegations and risk‑related disclosures: Hagens Berman highlights a 102% spike in Klarna’s credit‑loss provision and is probing IPO disclosure claims—this raises concerns about credit quality and whether prior disclosures were adequate. Hagens Berman investor alert (GlobeNewswire)
• Negative Sentiment: Analyst action: Morgan Stanley cut its price target from $39 to $23 and set an “equal weight” rating, lowering broker support and signaling reduced near‑term upside from prior estimates. Benzinga: Morgan Stanley price target cut

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.