
Shares of Buy Now, Pay Later firm Klarna Group plc (KLAR) are on a three-week winning streak as investors have piled into the stock ahead of its second-quarter earnings results.
The firm is expected to post its Q2 print on Tuesday before the bell. Meanwhile, Morgan Stanley has raised the price target on Klarna to $21 from $18 and keeps an ‘Equal Weight’ rating on the shares, implying an upside of about 1% from its last close.
The analyst said it expects the company to post a beat in Q2 on the back of robust e-commerce results, but added that it thinks the discount to Affirm (AFRM) "likely only compresses with sustained execution on credit," per TheFly.
The 12-month average price target is $24.55, according to data from Koyfin. This implies an upside of more than 18% from its last close.
Of the 22 analysts covering the stock, 13 have a ‘Buy’ or higher rating, while nine have a ‘Hold’ rating on the company.
According to data from Fiscal.ai, analysts expect the BNPL firm to post a loss per share of $0.06 on revenue of $995 million.
The company, which debuted on the New York Stock Exchange in Sept. 2025, posted a loss per share of $0.01 on revenue of $1.01 billion in the previous quarter.
On Stocktwits, retail sentiment around KLAR stock was ‘neutral’ at the time of writing even as message volumes surged 300% over 24 hours.
One user said on Friday, “$KLAR great day. Knowing the usual issue of keeping gains and today's success in that regard, I'm ready for a +15% within next week.”
However, another user said, “$KLAR Earnings are this week. Who knows what the stock will do.”
KLAR stock is down more than 27% so far in 2026.
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