The Klarna Card has been a major catalyst that can normalize buy now, pay later (BNPL) and attract more customers. The fintech attracted many new customers and merchants in Q3, demonstrating that demand is growing.
The consensus price target hints at a 51.1% upside potential for Klarna (KLAR). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
Klarna (KLAR) remains a buy as scalable PSP partnerships drive merchant adds and accelerate growth. KLAR's integration with Apple Pay and Stripe unlocks significant GMV upside and broadens user access. Fair Financing penetration is rising, materially improving unit economics and future interest income visibility.
Klarna is upgraded to a "Buy" as valuation compresses and U.S. revenue growth accelerates post-IPO correction. KLAR's key growth drivers include the KlarnaUSD stablecoin launch, surging U.S. BNPL adoption, and a stable base of low-cost European deposits. Fair Financing GMV grew 139% y/y to $3.2 billion, now 10% of total GMV, with U.S. Fair Financing GMV up 244% y/y.