Klarna Gets Downgrade on Guidance Cut, C-Suite Departures

Dow Jones08-25

1418 ET - UBS analysts are souring on Klarna Group after the financial-technology company slashed its outlook for gross merchandise volume last week. The magnitude of the guidance cut "suggests a meaningful downtick in international growth expectations, particularly for Germany," the analysts say. The analysts also point to upcoming changes to Klarna's C-suite, with its chief financial officer and chief marketing officer--both long time executives at the company--departing over the coming quarters. With both factors adding uncertainty in the near term, the analysts downgrade the stock to neutral from buy, despite seeing the company well-positioned within the buy now, pay later market. They also cut their price target on the stock to $16 from $23.

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