Klarna price target lowered to $37 from $46 at BofA

BofA lowered the firm’s price target on Klarna (KLAR) to $37 from $46 and keeps a Buy rating on the shares. Klarna shares were under pressure after it reported an “underwhelming” 2026 outlook, marked by lower than expected transaction margins, the analyst tells investors. While Klarna pointed to the stronger than expected growth in Fair Financing as a key driver of this, the firm thinks investors were hoping for both strong growth and margin expansion, though while margin expansion is occurring a little slower than expected, the firm adds that it remains “bullish on the name.”