Wall Street Zen Downgrades Klarna Group (NYSE:KLAR) to Sell

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

Several other research firms have also recently commented on KLAR. Zacks Research upgraded Klarna Group to a “hold” rating in a research note on Tuesday, October 7th. The Goldman Sachs Group began coverage on shares of Klarna Group in a research report on Monday, October 6th. They set a “buy” rating and a $55.00 price objective for the company. Rothschild Redb raised shares of Klarna Group to a “hold” rating in a report on Monday, October 6th. Keefe, Bruyette & Woods dropped their price target on shares of 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, Weiss Ratings restated a “sell (e+)” rating on shares of Klarna Group in a research report on Monday, December 29th. Eleven equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $46.60.

Klarna Group Stock Performance

Shares of NYSE KLAR opened at $27.73 on Friday. The stock has a market capitalization of $19.91 billion and a PE ratio of -42.66. Klarna Group has a twelve month low of $26.83 and a twelve month high of $57.20. The company has a 50 day moving average price of $30.17.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Farther Finance Advisors LLC acquired a new position in shares of Klarna Group in the 4th quarter valued at $48,000. U.S. Capital Wealth Advisors LLC acquired a new position in Klarna Group in the fourth quarter valued at $1,485,000. Sumitomo Mitsui Trust Group Inc. grew its position in Klarna Group by 53.5% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 812,743 shares of the company’s stock valued at $23,496,000 after acquiring an additional 283,261 shares during the period. Robeco Institutional Asset Management B.V. increased its stake in Klarna Group by 150.0% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 150,000 shares of the company’s stock worth $4,336,000 after acquiring an additional 90,000 shares during the last quarter. Finally, Compagnie Lombard Odier SCmA raised its holdings in shares of Klarna Group by 43.5% in the 4th quarter. Compagnie Lombard Odier SCmA now owns 1,650 shares of the company’s stock worth $48,000 after purchasing an additional 500 shares during the period.

Key Klarna Group News

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

• Positive Sentiment: Analyst initiation — Seeking Alpha initiated coverage as a Buy, citing Klarna’s BNPL/neobank growth potential and a path to adjusted EPS profitability in FY2026. Klarna Proves Itself A BNPL/Neobank Disruptor – Initiate Buy With Caveats
• Positive Sentiment: Product expansion — reports that Klarna will offer an after‑purchase BNPL option, which could boost merchant/consumer adoption over time if execution succeeds. Klarna to offer after-purchase BNPL
• Negative Sentiment: Multiple class-action filings and law‑firm investor notices — several firms (Robbins Geller, Berger Montague, Rosen, Pomerantz, Levi & Korsinsky, etc.) have announced suits or solicitations for lead plaintiffs related to Klarna’s IPO offering documents; the flurry increases legal overhang and potential liabilities. Lead-plaintiff deadline: Feb. 20, 2026. INVESTOR NOTICE: Klarna Group plc (KLAR) Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit
• Negative Sentiment: Investigation over credit-loss accounting — Hagens Berman and other firms are probing alleged understatement of loss reserves and point to a roughly 102% spike in Klarna’s credit loss provision; if true, this could imply bigger future charges and regulatory/suit risk. KLAR ALERT: Hagens Berman Investigating Alleged Claims in Securities Class Action Against Klarna Group (KLAR) Over 102% Spike in Credit Loss Provision

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.