Klarna Group PLC's stock fell by 5.01% today, crossing below the 5-day SMA, as broader market indices also declined with the Nasdaq-100 down 1.74% and the S&P 500 down 1.04%.
The decline follows Klarna's recent earnings report, which revealed a record Q3 revenue but also a significant net loss of $95 million due to increased provisions for credit losses. The company set aside $235 million for potential bad loans, exceeding analyst expectations, which raised concerns about its financial stability and future profitability. This situation has led to a negative market sentiment surrounding the stock, contributing to its price drop.
Investors are now closely monitoring Klarna's ability to manage its credit risks and maintain growth amid these financial pressures. The ongoing investigations into potential securities violations may further impact investor confidence and the company's market reputation.
Wall Street analysts forecast KLAR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KLAR is 44.36 USD with a low forecast of 36.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
Wall Street analysts forecast KLAR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KLAR is 44.36 USD with a low forecast of 36.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 24.140
Low
36.00
Averages
44.36
High
55.00
Current: 24.140
Low
36.00
Averages
44.36
High
55.00
Keefe Bruyette
Keefe Bruyette
Outperform -> Outperform
downgrade
$52 -> $45
2026-01-02
Reason
Keefe Bruyette
Keefe Bruyette
Price Target
$52 -> $45
AI Analysis
2026-01-02
downgrade
Outperform -> Outperform
Reason
Keefe Bruyette lowered the firm's price target on Klarna to $45 from $52 and keeps an Outperform rating on the shares. The firm adjusted price targets in consumer finance and payments groups.
Citi
Buy
downgrade
$58 -> $45
2025-11-20
Reason
Citi
Price Target
$58 -> $45
2025-11-20
downgrade
Buy
Reason
Citi lowered the firm's price target on Klarna to $45 from $58 and keeps a Buy rating on the shares. the firm dropped the target post the earnings report but believes Klarna continues to see "outsized growth" across its business.
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UBS
Timothy Chiodo
Buy
downgrade
$48 -> $46
2025-11-20
Reason
UBS
Timothy Chiodo
Price Target
$48 -> $46
2025-11-20
downgrade
Buy
Reason
UBS analyst Timothy Chiodo lowered the firm's price target on Klarna to $46 from $48 and keeps a Buy rating on the shares. Klarna's Q3 results showed strong momentum, with GMV and revenue both growing more than 20% year over year and outperforming expectations, supported by merchant network expansion, key retail partnerships, PSP integrations, and rapid Klarna Card adoption, the analyst tells investors in a research note. Improved transaction margins and operating leverage narrowed operating losses, suggesting a clearer path toward profitability as the business shifts toward higher-take-rate geographies and products, UBS says.
JPMorgan
Overweight
maintain
$50 -> $45
2025-11-19
Reason
JPMorgan
Price Target
$50 -> $45
2025-11-19
maintain
Overweight
Reason
JPMorgan lowered the firm's price target on Klarna to $45 from $50 and keeps an Overweight rating on the shares post the Q3 report. The company reported record gross merchandise volume, stable credit trends and a successful Klarna Card launch, but the shares pulled back on "inflated" consensus estimates and higher provision expense related to the fair financing ramp and mix into new markets, the analyst tells investors in a research note. The firm trimmed estimates post the print but is "encouraged" by Klarna's "stable" realized loss rates and early-stage delinquency rates.
About KLAR
Klarna Group Plc is a United Kingdom-based technology company focused on developing commerce networks. The Company is an artificial intelligence (AI)-powered global payments network and shopping assistant. It provides consumers and merchants with a range of solutions, including payment, advertising and digital retail banking, through several channels. Its online payments solution is designed to bridge uncertainty in the transactions between consumers and merchants by providing short-term credit to consumers interest-free. Its range of payment options allows consumers to purchase what they choose, both online and offline. Its payment solutions include Pay in Full, Pay Later and Fair Financing. Its Pay in Full instantly settles purchases at the time of the transaction. Its Pay Later enables consumers to purchase goods or services at the time of the transaction and pay the full amount at a later date. Its Fair Financing allows consumers to pay for their purchase over a longer duration.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
