UBS analyst Timothy Chiodo has maintained their bullish stance on KLAR stock, giving a Buy rating yesterday.
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Timothy Chiodo has given his Buy rating due to a combination of factors that highlight Klarna Group Plc’s strong performance and strategic initiatives. The company’s Q3 2025 results showed significant growth, with total Gross Merchandise Volume (GMV) reaching approximately $33 billion, a 23% increase year-over-year, and revenue growing by 26% to around $903 million. These figures surpassed UBS estimates, driven by the expansion of Klarna’s merchant network and partnerships with key players like Walmart and eBay.
Additionally, Klarna’s strategic partnerships with payment service providers such as Stripe and Worldpay are expected to further boost growth. The Klarna Card has also seen impressive adoption, with around 4 million sign-ups since its launch. The company’s path to profitability appears promising, as evidenced by a better-than-expected operating loss and improved operating leverage. These factors, along with a focus on higher transaction margin areas and favorable delinquency trends, support the positive outlook for Klarna’s future performance.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a $45.00 price target.