Wall Street Sees Klarna's AI Strategy, US Partnerships Driving Next Growth Phase

As global spending habits continue to shift toward digital transactions, the buy-now-pay-later industry is experiencing rapid expansion, drawing significant interest from investors worldwide. This trend has set the stage for Klarna Group PLC‘s (NYSE:KLAR) recent high-profile debut on the New York Stock Exchange, marking a significant milestone in the sector’s evolution.

In the largest IPO of 2025, buy-now-pay-later (BNPL) company Klarna Group PLC (NYSE:KLAR) raised $1.37 billion on Sept. 10.

Here are some takeaways from analyst initiation notes:

• Goldman Sachs analyst Will Nance began coverage with a Buy rating and price target of $55.
• Wedbush analyst Scott Devitt initiated coverage with an Outperform rating and price target of $50.
• Keefe, Bruyette & Woods analyst Sanjay Sakhrani initiated coverage with an Outperform rating and a price target of $52.

Check out other analyst stock ratings.

Goldman Sachs: Klarna has become the market leader in BNPL solutions, Nance said in the initiation note. The company has strong franchises in Europe, particularly in Sweden, Germany, and the UK, he commented.

Payment processors in Europe are now treating Klarna as a default payment method in e-commerce, "which we believe will drive network effects in the business and continue to drive higher adoption," the analyst stated. The focus in the near term is likely to be on the company's U.S. expansion, as it has recently won several large partnerships, "comprising nearly half a trillion dollars in addressable consumer spend that we expect to propel its U.S. market share," he further wrote.

Wedbush: Klarna has "a commanding share in Europe and rising position in the U.S.," Devitt wrote. He added that there are several drivers of durable GMV (gross merchandise value) growth over the intermediate term, including:

• Merchant product adoption
• New vertical growth
• International expansion
• Introduction of new consumer touchpoints and related commerce offerings

Klarna could achieve faster operating income growth as its AI-enabled strategy supports "incremental transaction margin improvement and operating leverage at scale," the analyst stated.

Keefe, Bruyette & Woods: Klarna is "the most global BNPL provider and commerce platform," Sakhrani said. The company has a presence in 26 countries, over 111 million active users and more than 790,000 merchant partners, he added.

Klarna’s transaction-centric revenue model, global brand, and untapped growth opportunities are likely to drive the company's long-term growth potential, the analyst stated. The company has consistently demonstrated its ability to gain share in core markets and replicate the growth trajectory in new regions, he further commented.

KLAR Price Action: Klarna Group shares were up 2.38% at $41.66 at the time of publication on Monday. The stock is trading within its 52-week range of $35.60 to $57.20, according to Benzinga Pro data.

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