Core Insights - The buy-now-pay-later (BNPL) industry is rapidly expanding due to shifting global spending habits towards digital transactions, highlighted by Klarna Group PLC's significant IPO raising $1.37 billion on September 10, 2025 [1] Company Overview - Klarna has emerged as the market leader in BNPL solutions, particularly strong in Europe, with notable franchises in Sweden, Germany, and the UK [2] - The company operates in 26 countries, has over 111 million active users, and more than 790,000 merchant partners, making it the most global BNPL provider [5] Market Position and Growth Potential - Klarna is being treated as a default payment method in European e-commerce, which is expected to drive network effects and higher adoption rates [3] - The company is focusing on U.S. expansion, having secured several large partnerships that represent nearly half a trillion dollars in addressable consumer spend [3] - Analysts predict durable growth in gross merchandise value (GMV) driven by Klarna's AI-enabled strategy, which is expected to enhance transaction margins and operating leverage [4] Analyst Ratings and Price Targets - Goldman Sachs initiated coverage with a Buy rating and a price target of $55 [8] - Wedbush provided an Outperform rating with a price target of $50 [8] - Keefe, Bruyette & Woods also rated it Outperform with a price target of $52 [8] Stock Performance - Klarna Group shares were trading at $41.66, reflecting a 2.38% increase, within a 52-week range of $35.60 to $57.20 [7]

Core Viewpoint - Klarna Group's stock has seen a positive response from analysts following its IPO, with a majority initiating coverage with favorable ratings, although the stock remains below its initial trading highs [1][2]. Analyst Coverage - At least 14 analysts have initiated coverage of Klarna stock, with 10 providing buy-equivalent ratings and the remainder offering neutral views [2]. - UBS analyst Timothy Chiodo set a price target of 48, indicating an 18% upside from Klarna's price at the start of trading [3]. - Wedbush Securities analyst Scott Devitt also initiated coverage with a buy rating and a price target of 50 [4][5]. - Bernstein analyst Harshita Rawat took a neutral stance with a price target of 45, noting that Klarna's U.S. business growth is crucial against competitors like Affirm [6][7]. Business Model and Market Position - Klarna operates as a global commerce enabler focused on Buy-Now-Pay-Later (BNPL) services, primarily in e-commerce, with potential for in-store expansion [4]. - The BNPL industry presents attractive unit economics, with Klarna earning an average gross profit take rate of approximately 1.1% to 1.2% of gross merchandise value [4]. - Klarna's total revenue for the year ending June 30 was reported at $3 billion, reflecting a 17% year-over-year growth, despite a net loss of $100 million, which is a 29% year-over-year improvement [9]. IPO Performance - Klarna launched its IPO on September 10, pricing shares at 40, raising $1.37 billion, with shares initially surging to 57.20 before closing at 45.82, a 14.6% gain [8]. - Following the IPO, Klarna's stock experienced volatility but has gained 15% in October, including recent trading gains [8].

Group 1 - The company in focus is a buy now pay later IPO, referred to as CLA, which is viewed positively by analysts despite a crowded market [1][2] - There is a sense of skepticism in the market, with references to a zero-sum mentality where there are clear winners and losers [4][5] - The company has a significant global footprint and has made credible promises in the past, which have been fulfilled, indicating strong management [2][3] Group 2 - Goldman Sachs has initiated a buy rating for the company, and Rothschild has also upgraded its rating, suggesting positive sentiment among analysts [4] - There is a concern regarding transparency and honesty in the industry, particularly with companies like OpenAI, which raises questions about their operations [7] - The narrative around the company includes anecdotes of past skepticism being overturned by strong performance, highlighting the potential for significant growth [8]

Core Insights - The article compiles significant research calls from Wall Street, highlighting upgrades and downgrades that could impact investor decisions. Upgrades - Deutsche Bank upgraded Mobileye (MBLY) to Buy from Hold with a price target of $19, indicating a favorable setup for the shares [2] - BofA upgraded Brinker (EAT) to Buy from Neutral with a price target of $192, up from $190, noting that full-service restaurants are better positioned due to higher incomes among older consumers [3] - Jefferies upgraded Ford (F) to Hold from Underperform with a price target of $12, up from $9, citing the potential for improved earnings as constraints on higher CO2 mix models loosen [4] - Rothschild & Co Redburn upgraded Affirm (AFRM) to Buy from Neutral with a price target of $101, up from $74, highlighting its established product set and international growth potential [5] - Morgan Stanley upgraded Micron (MU) to Overweight from Equal Weight with a price target of $220, up from $160, predicting multiple quarters of double-digit price increases that could enhance earnings power [6] Downgrades - Susquehanna downgraded Rambus (RMBS) to Neutral from Positive with a price target of $100, indicating that the best-case EPS outlook is already priced in [7] - BofA downgraded Shake Shack (SHAK) to Underperform from Neutral with a price target of $86, down from $148, due to margin pressures from competition and inflation [7] - Citi downgraded Boston Beer (SAM) to Neutral from Buy with a price target of $235, down from $255, anticipating continued challenges in the second half of 2025 [7] - Scotiabank downgraded AT&T (T) to Sector Perform from Outperform with a price target of $30.25, expecting modest revenue and EBITDA growth amid business segment weakness [7] - Scotiabank downgraded Check Point (CHPT) to Sector Perform from Outperform with a price target of $205, down from $220, expressing less optimism about the company despite a positive outlook for the U.S. software sector [7]

Recent weeks have seen a pickup in noteworthy US-listed initial public offerings, with fintech Klarna, ticket reseller StubHub and cybersecurity firm Netskope among the slew of high-profile IPOs that Wall Street hopes signal a bumper fall. But the IPO market isn’t likely to party again like it did in 1999. A years-long slump in listings, due to an appetite first dented by high interest rates and inflation and more recently by tariff uncertainty, is just the tip of a much bigger iceberg. And hopes for a re ...

Core Insights - A significant increase in the acceptance of Buy Now, Pay Later (BNPL) loans is observed, particularly as the holiday shopping season approaches, with 60% of surveyed participants feeling more financial stress [1][2] - Approximately 80% of shoppers who have used or considered BNPL are open to utilizing it for holiday shopping this year, indicating its mainstream adoption [2] Summary by Sections BNPL Overview - BNPL loans allow consumers to pay for purchases in installments, typically with little to no interest, no hard credit checks, and quick approval [3] - Various services such as Affirm, Klarna, Afterpay, and PayPal provide BNPL options during online checkouts, with flexibility in payment terms [4] Consumer Behavior - Younger generations, particularly Gen Z and Millennials, are the primary users of BNPL, with about 10% of each generation utilizing these loans [7] - The convenience of BNPL is appealing to consumers, especially those experiencing financial stress [8] Credit Reporting - Starting in fall 2025, FICO will include BNPL loans in credit scores, although not all providers are required to report this activity [5]

Wall Street had its popcorn ready: After three years of sputters, the IPO screen was lighting up again , with Klarna , CoreWeave , and a handful of buzzy consumer names. Then Washington tripped over the power cord, plunging the whole IPO theater into darkness . With a federal government shutdown having started this week, the Securities and Exchange Commission is running on a skeleton crew. That means no new registration statements get reviewed, no comment letters get cleared, and no “effective” notices ge ...

Sheel Mohnot, co-founder and general partner of Better Tomorrow Ventures (BTV), has one simple answer for anyone claiming that investing in fintech has lost some of its attractiveness. “The world of finance is huge. About 20% of global GDP is financial services, and it’s still not digital enough,” he told TechCrunch. Many financial transactions are still handled manually, and Better Tomorrow Ventures — led by Mohnot (a former general partner at 500 Startups) and NerdWallet co-founder Jake Gibson — aims ...

This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Dive Brief: California-based robo-adviser Wealthfront publicized the paperwork for its upcoming initial public offering on Monday. The timing of a government shutdown, which began at midnight Wednesday, may complicate the company’s plan to go public. During the shutdown, routine company filings with the Securities and Exchange Commission will continue, but the ag ...

Group 1: Hong Kong IPO Market - The Hong Kong IPO market has seen a significant increase in activity, with a total fundraising amount of approximately 1,823.97 billion HKD (234.37 billion USD) in the first nine months of 2025, representing a year-on-year increase of 227.15% [2] - In Q3 2025, the fundraising amount reached 735.17 billion HKD (94.47 billion USD), which, despite being lower than the previous quarter, was still 74.12% higher than the same period last year [2] - Major IPOs in Q3 included Zijin Gold International and Chery Automobile, raising 249.84 billion HKD (32.10 billion USD) and 91.45 billion HKD (11.75 billion USD) respectively [9][10] Group 2: Comparison with US IPO Market - The US IPO market has shown a different trend, with the Nasdaq and NYSE raising 15.075 billion USD and 15.204 billion USD respectively in the first three quarters of 2025, marking year-on-year increases of 7.73% and 29.78% [2] - Despite the overall lower fundraising in the US compared to Hong Kong, the US market has seen notable IPOs driven by AI and stablecoin concepts, with companies like Klarna and Circle raising significant amounts [5][15] - The Nasdaq China Golden Dragon Index has increased by 28.69% this year, outperforming the S&P 500 and Nasdaq indices, yet the number of Chinese concept stocks going public in the US has significantly decreased [4][16] Group 3: Future Outlook - The Hong Kong IPO market is expected to remain active, with 331 applications pending as of late August 2025, and a notable increase in applications in September [12] - The trend of A-share companies choosing to list in Hong Kong is evident, with major firms like CATL and Hengrui Medicine leading the charge [10][14] - The ongoing interest in biotech companies, particularly unprofitable ones, has resulted in substantial stock price increases, indicating strong market support for innovative sectors [13][14]