On Oct 30, major Wall Street analysts update their ratings for $PayPal (PYPL.US)$, with price targets ranging from $85 to $110.
J.P. Morgan analyst Tien Tsin Huang maintains with a buy rating, and adjusts the target price from $80 to $90.
BofA Securities analyst Jason Kupferberg maintains with a hold rating, and adjusts the target price from $82 to $86.
Citi analyst Andrew Schmitt maintains with a buy rating, and maintains the target price at $94.
Barclays analyst Ramsey El Assal maintains with a buy rating, and maintains the target price at $92.
UBS analyst Timothy Chiodo maintains with a hold rating, and adjusts the target price from $72 to $85.
Furthermore, according to the comprehensive report, the opinions of $PayPal (PYPL.US)$'s main analysts recently are as follows:
PayPal's consistent performance post Q3 announcement is noted, despite prior stock appreciation, denser market positioning, and high anticipations. Looking ahead to 2024, which is anticipated to be a pivot year, current valuation and market sentiment are believed to provide a buffer against potential declines.
PayPal's updated FY24 guidance, accompanied by stable mid-single digit growth in Branded Checkout, has instilled a moderately increased confidence in the company's primary gross profit catalyst moving forward. Additionally, there are preliminary anticipations for growth in transaction margin dollars in 2025.
PayPal is positioned to achieve steady mid-single digit gross profit growth with a sustainable high-single to low-double digit growth in earnings per share. However, initiatives to enhance Branded growth, increase Pay with Venom utilization, and develop Fastlane are anticipated to necessitate a prolonged period of patience, potentially until late 2025 to 2026.
Following the Q3 report, the market's reaction to PayPal shares, which closed down 4%, is considered a positive sign given the stock's recent robust performance. This comes as investors weigh the company's performance which surpassed consensus expectations on key transaction margin dollars and adjusted earnings, leading to an improved forecast for FY24. Analysts note that while the financial expectations for fiscal 2025 appear to be well-positioned, the demands for operational excellence are increasing.
Following PayPal's third-quarter earnings surpassing expectations, there was an observed acceleration in the growth of the company's transaction margin dollars. Despite the anticipation of a near-term deceleration in growth as a result of diminishing gains from interest income, the guidance provided by management for the fourth quarter is perceived as unduly cautious.
Here are the latest investment ratings and price targets for $PayPal (PYPL.US)$ from 15 analysts:
Note:
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