Klarna Group Plc (KLAR) has received a new Buy rating, initiated by J.P. Morgan analyst, Tien Tsin Huang.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Tien Tsin Huang’s rating is based on Klarna’s strategic expansion and growth potential. Klarna, a leader in the Buy Now Pay Later (BNPL) sector, is broadening its reach in the United States and diversifying into more profitable, longer-term loans. This expansion is expected to drive significant revenue growth and margin improvements over the next few years.
Additionally, Klarna’s shares are currently undervalued compared to its main competitor, Affirm, offering a promising opportunity for long-term investors. The company’s strong market position and innovative financial solutions are poised to enhance its market share and revenue. Despite some risks associated with credit, the potential for higher returns through its Fair Financing initiative supports the Buy rating.
In another report released today, Nordea Markets also initiated coverage with a Buy rating on the stock with a $52.00 price target.