11:12 AM EDT, 10/06/2025 (MT Newswires) -- Klarna Group ( KLAR ) shares are offering investors an "attractive entry point" in the buy now, pay later sector as the industry is reaching a greater share of overall commerce, UBS said in a note Monday.

The sector has "attractive unit economics" and Klarna ( KLAR ) earns an average gross profit take rate of about 1.1% to 1.2% of gross merchandise volume, UBS said, adding the company's "mix is shifting toward higher take rate parts of the market."

UBS also highlighted the fact that the $4.3 trillion buy now, pay later e-commerce total addressable market is "still under penetrated" and said it is "bullish" on the runway for the industry, both for online and in-store purchases.

UBS started coverage of Klarna ( KLAR ) with a buy rating and $48 price target.

Klarna ( KLAR ) shares were up 2.5% in recent trading.

Price: 41.66, Change: +0.97, Percent Change: +2.38