Compass Point starts Klarna with Buy on U.S. expansion

Compass Point analyst Dominick Gabriele last night initiated coverage of Klarna (KLAR) with a Buy rating and $53 price target which represents 24% upside. Demand for buy now play later “remains robust “and credit trends across the payment landscape are “fairly benign,” the analyst tells investors in a research note. The firm believes Klarna shares will outperform its payment peers as the company penetrates further into the U.S. The company has room to cross-sell its customer base as it grows the U.S. business, contends Compass Point.