BMO Capital initiated coverage of Klarna (KLAR) with a Market Perform rating and $16 price target The firm views the company as a long-term structural share gainer. However, Klarna’s strategy to focus on longer-duration credit products introduces greater earnings volatility and credit risk, the analyst tells investors in a research note. BMO wants to see greater evidence that Klarna’s monetization gains can be delivered without compromising risk before recommending the shares.
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