Will Nance, an analyst from Goldman Sachs, has initiated a new Buy rating on Klarna Group Plc (KLAR).
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Will Nance has given his Buy rating due to a combination of factors that highlight Klarna Group Plc’s strong market position and growth potential. Klarna is recognized as a leader in the Buy-Now-Pay-Later (BNPL) sector, particularly in Europe, where it has established a robust presence. This strong foothold in key markets such as Sweden, Germany, and the UK positions Klarna as a default payment method in e-commerce, which is expected to enhance its network effects and drive further adoption.
Additionally, Klarna’s expansion into the US market is seen as a significant growth driver, offering substantial upside potential. Despite the inherent cyclicality of the consumer finance market, Klarna is anticipated to consistently gain market share, benefiting from the shift towards BNPL solutions and its strategic geographical expansion. These factors collectively support the Buy rating with a projected price target that suggests a notable upside.
In another report released today, Nordea Markets also initiated coverage with a Buy rating on the stock with a $52.00 price target.