Kyle Peterson, an analyst from Needham, has initiated a new Hold rating on Klarna Group Plc (KLAR).
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Kyle Peterson has given his Hold rating due to a combination of factors that highlight both the strengths and challenges facing Klarna Group Plc. Klarna is recognized as a global leader in the Buy Now, Pay Later (BNPL) sector, boasting a significant gross merchandise volume and an expanding network of retail partnerships with top consumer brands. Additionally, the company’s possession of a full banking license provides it with a competitive advantage in terms of funding.
However, there are concerns about potential cost pressures, as initial efforts to reduce expenses through headcount freezes and AI-driven customer service seem to have stalled. Furthermore, the recent loss of Walmart as a partner to a competitor could negatively impact Klarna’s economic standing. These challenges, coupled with the high valuation of the stock, currently prevent a more favorable recommendation.
Peterson covers the Technology sector, focusing on stocks such as Alight, Fair Isaac, and Affirm Holdings. According to TipRanks, Peterson has an average return of 5.7% and a 48.02% success rate on recommended stocks.