Klarna price target lowered to $20 from $46 at UBS

UBS lowered the firm’s price target on Klarna (KLAR) to $20 from $46 and keeps a Buy rating on the shares. Q4 showed strength in user growth, merchant expansion, and Fair Financing, but misses on TM$ and adjusted operating profit, along with softer 2026 GMV and TM$ guidance, point to near-term unit-economics pressure, the analyst tells investors in a research note. Margin improvement is now expected later, driven by a mix shift toward higher-margin U.S. volumes and increased contribution from Fair Financing, UBS says.