Klarna went public last month. Here’s what analysts have to say on the buy now, pay later stock
Analysts are bullish on buy now, pay later stock Klarna one month after it went public in the New York Stock Exchange . The day before its debut, the Swedish fintech company priced shares at $40 a piece, valuing the company at about $15 billion. The stock rose 15% on its first trading day, closing at $45.82 each. However, The stock has dipped from that high, closing Friday’s session at $40.69. In recent months, the company has attempted to shift its core business into more of a digital retail bank rather than a financier of short-term loans. Following the stock’s 25-day quiet period, a smattering of sell-side shops initiated coverage on Klarna, with many holding an optimistic view on the stock. Here’s what analysts from some of Wall Street’s biggest banks had to say. UBS: Buy rating, $48 price target The bank’s 12-month forecast corresponds to a potential upside of 18%. “At current levels, we believe the shares offer an attractive entry point alongside potential upside as the BNPL industry gains greater share of overall commerce.” Deutsche Bank: Buy, $48 price target “Ultimately, our thesis on Klarna centers on 1) continued consumer adoption of BNPL (which should benefit the largest global BNPL player), 2) accelerating topline growth on the back of U.S. expansion, and 3) a strong margin expansion story in FY26 and beyond.” JPMorgan: Overweight, $50 price target Analyst Tien-tsin Huang’s price target calls for a 23% upside ahead. “Klarna is a fintech pioneer that has grown into an international financing and commerce powerhouse, connecting over 110 million active users to almost 800K merchants across 26 countries since inventing Buy Now Pay Later (BNPL) two decades ago in Sweden. Today, Klarna is expanding its presence in the United States while scaling into more profitable, longer duration loans … Shares trade at a healthy discount to those of its primary peer, Affirm, presenting an attractive longer-term opportunity to close the gap over time, recognizing this might require multiple quarters of solid execution.” Bank of America: Buy, $51 price objective The bank’s price target implies shares could rally 25% from here. “Klarna offers consumers a convenient and transparent way to finance purchases, with its most prolific offering allowing buyers to split a transaction into four payments at 0% APR over 30-90 days. Investment highlights include a significant TAM opportunity of $2.9T by 2030 (particularly in the U.S.), a growing merchant network, solid credit results, attractive funding structure, and robust product lineup. With shares trading at 8x EV/C26e Gross profit, we see more headroom to run.” Goldman Sachs: Buy, $55 price target Analyst Will Nance sees potential for a 35% rally ahead. “While we acknowledge the cyclicality of the consumer finance end market, and the favorable market conditions currently, through the cycle, we see Klarna as consistent share gainer over time, benefiting from 1) share shifts to the BNPL category, 2) network effects, particularly in Europe, and 3) further geographical expansion.” ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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