Brokerages Issue Mixed Ratings After Klarna IPO
Brokerages Issue Mixed Ratings After Klarna IPO

Brokerages Issue Mixed Ratings After Klarna IPO

News summary

After Klarna's recent U.S. IPO, a flurry of brokerages initiated coverage, issuing mixed ratings and price targets ranging from cautious calls such as Morgan Stanley (Equalweight, $43), Bernstein (Market Perform, $45) and Rothschild (~$46) to bullish views from Keefe, Bruyette & Woods ($52), Wolfe Research and Wedbush (around $50), BofA ($51) and Goldman Sachs (buy, $55 per Benzinga). Analysts cite Klarna's roughly 20% revenue growth, strong merchant network, AI-enabled strategy, high gross margin (~72%), robust liquidity (current ratio ~17.8x) and a market value near $15.35 billion as reasons for upside. Several firms warn rising costs — notably from Klarna's Fair Financing business and U.S. expansion — have pressured near-term profitability. Reuters and some analysts expect margins and GAAP profitability to recover by 2026–2027 as higher‑margin products scale. The stock has traded down about 22% from its Sept. 10 opening amid a broader fintech sell-off.

Story Coverage
Bias Distribution
50% Center
Information Sources
daae85f0-2883-42fc-b085-888140adf30da3544a73-dab3-486d-ae75-bd4d15f01f55
Left 50%
Center 50%
Coverage Details
Total News Sources
2
Left
1
Center
1
Right
0
Unrated
0
Last Updated
1 day ago
Bias Distribution
50% Center
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