Why Is Klarna Stock Gaining Premarket Today?

Citi expects the company's key performance indicators to grow, given its exposure to the "untapped, fast-growing" buy-now, pay-later market.

Klarna (KLAR) stock gained 2.7% in premarket trading on Monday after several brokerages initiated coverage on the buy-now, pay-later company’s stock with a bullish view.

According to TheFly, Citi initiated coverage of Klarna with a ‘Buy’ rating and set a price target of $58. The firm expects the company's key performance indicators to grow, given its exposure to the "untapped, fast-growing" buy-now, pay-later market. Citi expects Klarna's transaction margins to increase in fiscal 2026 and remains positive on the shares.

Echoing Citi analysts, Goldman Sachs initiated coverage of the company with a ‘Buy’ rating. The brokerage noted that Klarna is the market leader in buy-now, pay-later solutions, with a powerful franchise in Europe. The firm said the company offers a new closed-loop payment scheme, similar to American Express in the United States. Goldman analysts also expect the company to gain market share over time.

Klarna, alongside the likes of Affirm, is trying to assert its dominance in the highly competitive BNPL industry. In September, the company raised $1.37 billion in its initial public offering.

The company, founded in 2015, reported in an earlier filing that its revenue for the first six months of 2025 was $1.52 billion, while it incurred a net loss of $153 million during this period.

In the same period a year ago, Klarna generated $1.33 billion in revenue, while incurring a net loss of $38 million. It has 111 million active users and 790,000 merchants on its platform, offering BNPL and other services.

The firm is currently expanding its “fair financing” program that extends larger-ticket loans to customers over a longer period, in a bid to become a full-fledged bank.

Klarna's stock has fallen 10.6% since its trading debut in September.

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