Not a good buy right now: the stock is in a strong downtrend (bearish moving averages) and pre-market is weak (-2.77%), which is unfavorable for an impatient entry.
Oversold conditions (RSI_6 ~12.8) can produce sharp bounces, but without confirmation (no proprietary buy signals), the higher-probability path is continued volatility and downside tests.
Near-term headline risk is elevated due to multiple IPO-related class action reminders (lead plaintiff deadline Feb 20, 2026) and earnings upcoming (Feb 19 pre-market).
Trend/structure: Bearish alignment (SMA_200 > SMA_20 > SMA_5) indicates the dominant trend is still down.
Momentum: MACD histogram is negative (-0.604) but “negatively contracting,” suggesting downside momentum is slowing (possible bounce setup, not a trend reversal yet).
Mean reversion risk/reward: RSI_6 at 12.821 is deeply oversold, so a short-term rebound is possible, but oversold can persist in downtrends.
Key levels: Immediate support S1 ~21.807 (very close to current price area). If it fails, next support S2 ~19.899. Upside hurdles: Pivot ~24.895, then R1 ~27.984.
Pattern-based odds: Similar-pattern stats imply ~60% chance of slight downside next day/week, but a better 1-month skew (+4.12%), reinforcing “bounce possible, but timing is poor today.”
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Positioning/sentiment: Put/Call ratios below 1 (OI 0.77; volume 0.65) lean bullish (more calls relative to puts), suggesting traders are not heavily hedging near-term.
Volatility: Implied vol (30D) is very high (93.24) vs historical (46.67), with high IV percentile (~79.8). Market is pricing large moves (expensive options; elevated event risk).
Activity: Today’s volume (2,277) is far below the 5D average (6,471) and below the 10D average (4,386), so today’s tape doesn’t show strong conviction.
Open interest: Today’s open interest (~95,608) is elevated vs 30D average (122% of avg), implying meaningful existing positioning, but not necessarily fresh bullish flow today.
Technical Summary
Sell
9
Buy
5
Positive Catalysts
increases the odds of a reflex bounce if support near ~21.8 holds.
Neutral/Negative Catalysts
Profitability deteriorated sharply in the latest reported quarter (loss widened materially), which can keep pressure on valuation sentiment.
Financial Performance
Latest quarter: 2025/Q3.
Growth: Revenue rose to 903M (+27.90% YoY), showing strong expansion.
Profitability: Net income fell to -95M (down -891.67% YoY), indicating losses widened significantly.
EPS: -0.25 (down -933.33% YoY), reinforcing that earnings power/credit-cost trajectory is the key investor concern.
Takeaway: Top-line momentum is good, but the market is focused on loss durability/credit risk and the path to profitability.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: Analysts largely kept positive ratings (Buy/Outperform/Overweight), but price targets were broadly cut post-Q3, signaling valuation reset and higher perceived risk.
Latest targets (after cuts): Many clustered around $45–$46 (Citi, JPMorgan, Keefe Bruyette, BofA, Wolfe, UBS), with Morgan Stanley lower at $39 (Equal Weight).
Wall Street “Pros”: Strong GMV/revenue momentum, merchant network expansion, Klarna Card adoption, operating leverage potential, and generally stable credit trends per several notes.
Wall Street “Cons”: Concerns around credit durability and provisioning tied to portfolio mix (e.g., fair financing ramp/new markets), plus valuation recalibration after IPO and earnings-related expectation resets.
Net: The Street likes the long-term story, but near-term execution/credit headlines are enough that it’s not an attractive ‘buy-now’ setup at this moment.
Wall Street analysts forecast KLAR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KLAR is 44.36 USD with a low forecast of 36 USD and a high forecast of 55 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
Wall Street analysts forecast KLAR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KLAR is 44.36 USD with a low forecast of 36 USD and a high forecast of 55 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 20.350
Low
36
Averages
44.36
High
55
Current: 20.350
Low
36
Averages
44.36
High
55
Keefe Bruyette
Keefe Bruyette
Outperform -> Outperform
downgrade
$52 -> $45
AI Analysis
2026-01-02
Reason
Keefe Bruyette
Keefe Bruyette
Price Target
$52 -> $45
AI Analysis
2026-01-02
downgrade
Outperform -> Outperform
Reason
Keefe Bruyette lowered the firm's price target on Klarna to $45 from $52 and keeps an Outperform rating on the shares. The firm adjusted price targets in consumer finance and payments groups.
Citi
Buy
downgrade
$58 -> $45
2025-11-20
Reason
Citi
Price Target
$58 -> $45
2025-11-20
downgrade
Buy
Reason
Citi lowered the firm's price target on Klarna to $45 from $58 and keeps a Buy rating on the shares. the firm dropped the target post the earnings report but believes Klarna continues to see "outsized growth" across its business.
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