Keefe Bruyette Lowers Klarna (KLAR) PT to $45 Due to Sector-Wide Valuation Adjustments

Klarna Group plc (NYSE:KLAR) is one of the best up and coming stocks to buy according to Wall Street. On January 2, Keefe Bruyette lowered the firm’s price target on Klarna to $45 from $52 and kept an Outperform rating on the shares. The firm revised its price targets across the consumer finance and payments sectors as part of its updated valuation assessments.

Additionally, Klarna Group (NYSE:KLAR) reported that the company reached a total revenue of $903 million in Q3 2025, which was supported by a 51% year-over-year revenue increase in the US and a 43% rise in US GMV. A primary driver of this success was the Fair Financing product, which saw GMV grow by 139% globally and 244% in the US, as the number of merchants offering the product tripled over two years to 151,000.

Klarna continues to use AI to drive unprecedented efficiency. The company has reduced its total headcount by 47% through natural attrition, while revenue per employee has climbed to $1.1 million. Its AI assistant now performs work equivalent to 853 full-time roles, saving an estimated $60 million annually. These gains allowed Klarna to maintain flat operating expenses despite 108% revenue growth over the measured period. Klarna is also successfully transitioning into a Global Neobank. The Klarna Card has reached 3.2 million active users and now generates 4x more revenue per customer ($130) than a standard active user ($33).

Klarna Group (NYSE:KLAR) operates as a digital bank and flexible payments provider in the UK, the US, Germany, Sweden, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.