Klarna Stock (KLAR) Gains Bullish Coverage After Difficult Start To Public Life

Klarna Group's stock (NYSE: KLAR), the Swedish fintech giant specializing in buy now, pay later (BNPL) services, is attracting renewed investor interest following a rocky start to its public trading life. KLAR is under the microscope as markets digest a mix of strategic initiatives, financial performance data, and analyst outlooks.

Since its IPO on September 10, Klarna's stock has experienced considerable volatility. After opening at $52, a substantial 30% jump from its $40 IPO price, the shares reached a 52-week high of $57.20 on the same day. However, the momentum proved short-lived, and the stock slid to a low of $38.31 by September 26. 

The recent initiation of coverage by Goldman Sachs, with a ‘Buy' rating and a $55 price target, has injected a dose of optimism into the market's perception of Klarna. This price target suggests a potential upside of approximately 34% from the current trading price.

Goldman Sachs emphasizes Klarna's leading position in the BNPL sector, particularly in Europe, and likens its closed-loop payment system to that of American Express in the United States, anticipating further market share gains.

Klarna's financial performance in 2024 showcased a 24% increase in revenue, reaching $2.81 billion, up from $2.28 billion the prior year. The company also achieved a profit of $21 million, a notable turnaround from a $244 million loss in 2023. This financial recovery underscores Klarna's ability to scale its operations while achieving profitability, a key factor for investors assessing long-term sustainability.

The company's strategic initiatives are also noteworthy. Klarna launched a debit card pilot program in the U.S. in June 2025, allowing consumers to pay immediately or opt for interest-free installments, positioning it to compete more directly with traditional banking institutions. Further expanding its reach, Klarna partnered with OnePay in March 2025 to offer installment loans for purchases at Walmart stores across the U.S., providing flexible payment options for Walmart customers. Klarna’s integration of BNPL payment options into the DoorDash delivery app further signifies its ambition to embed its services into everyday consumer activities.

Analysts project a positive outlook, with an average rating of ‘Buy' and a 12-month price target of $53, indicating a potential upside of over 42% from the current price. Other recent coverage includes Keefe Bruyette ($52, Outperform), Citi ($58, Buy), and Compass Point ($53, Buy).

The combination of bullish coverage, strategic partnerships, and improved financial performance may signal a turning point for Klarna's stock.

The market's initial skepticism following Klarna's IPO appears to be tempered by recent positive developments. While the stock has faced volatility, the company's strategic moves and improving financials, coupled with favorable analyst coverage, may contribute to a more bullish sentiment in the coming months.