Klarna's (KLAR) "customer-centric" approach, focus on innovation through artificial intelligence and strategic partnerships with JP Morgan (JPM), Worldpay (WDAY), Apple (AAPL), and Alphabet's (GOOG, GOOGL) Google position the company for continued growth, analysts said Deutsche Bank, as they initiated coverage on the stock.

"Klarna's expanding ecosystem, encompassing the Klarna Card, Klarna Balance, and Klarna Media, creates multiple revenue streams beyond traditional MDR fees, offering investors exposure to a diversified and rapidly evolving fintech platform," the analysts said.

Klarna's emphasis on global expansion, especially in the United States, along with its "strong" brand recognition and high user engagement, strengthens its long-term growth prospects, Deutsche Bank said.

Analysts also said that Klarna's investment thesis rests on its potential to disrupt traditional payment networks and capture a significant chunk of the digital payments market.

Deutsche Bank has a buy rating on the stock and a $48 price target.

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