Core Viewpoint - BofA Securities initiated coverage on Klarna with a Buy rating and a price target of $51.00, highlighting its leadership in the Buy Now, Pay Later (BNPL) market [1] Group 1: Market Opportunity - BofA estimated the total addressable market for BNPL at $2.9 trillion by 2030, with significant growth potential in the U.S. [2] - Analysts noted that Klarna's expanding merchant network presents a major growth opportunity [2] Group 2: Competitive Advantages - Key competitive advantages for Klarna include solid credit performance, a favorable funding structure, and a diverse product suite [2] - The firm emphasized that Klarna's shares are trading at 8x enterprise value to projected 2026 gross profit, indicating a compelling valuation with room for upside [2]
BofA Securities Initiates Coverage On Klarna With Buy Rating, $51 Price Target