(Reuters) -Brokerages are largely bullish on buy-now-pay-later (BNPL) lender Klarna as they begin coverage on Monday, though some warn that rising costs could pressure near-term profitability.

Shares of the Swedish fintech are up 2% in premarket trading.

Klarna made its long-awaited U.S. public debut last month at $52 a share, above its initial IPO pricing of $40, after shelving its listing plans in April amid tariff-driven market turbulence.

The offering capped the company’s years-long push to go public and signaled a broader resurgence in the U.S. IPO market.

Goldman Sachs, J.P. Morgan and Morgan Stanley were among the underwriters for the offering.

“We view Klarna as the market leader in BNPL solutions, with a particularly strong franchise in Europe, where we believe Klarna is a ne

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