BofA Securities initiated coverage on Klarna (NYSE: KLAR) with a Buy rating and a price target of $51.00.
The firm described Klarna as a leading provider in the Buy Now, Pay Later (BNPL) space, offering consumers a simple and transparent financing option that allows purchases to be split into four interest-free payments over 30 to 90 days.
BofA estimated the total addressable market for BNPL at $2.9 trillion by 2030, with the U.S. representing a major growth opportunity. Analysts cited Klarna’s expanding merchant network, solid credit performance, favorable funding structure, and diverse product suite as key competitive advantages.
The firm added that with shares trading at 8x enterprise value to projected 2026 gross profit, the valuation remained compelling with additional room for upside.
