On Oct 31, major Wall Street analysts update their ratings for $PayPal (PYPL.US)$, with price targets ranging from $85 to $100.
J.P. Morgan analyst Tien Tsin Huang maintains with a buy rating, and adjusts the target price from $80 to $90.
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.
Mizuho Securities analyst Dan Dolev maintains with a buy rating, and maintains the target price at $100.
Furthermore, according to the comprehensive report, the opinions of $PayPal (PYPL.US)$'s main analysts recently are as follows:
Analysts have observed PayPal's performance post-Q3 results to be relatively stable, which aligns with expectations considering the stock's earlier gains, increased investor participation, and heightened anticipations. Looking ahead to 2024, which is anticipated to be a transitional period, it is believed that the current valuation and investor sentiment may provide a cushion against potential declines.
PayPal has increased its FY24 guidance amid consistent mid-single digit growth in Branded Checkout, according to an analyst. This update has slightly bolstered confidence regarding the key driver of gross profit moving forward and the initial projections for growth in transaction margin dollars for 2025.
PayPal is positioning itself to consistently grow gross profit by mid-single digits and to sustain a high-single to low-double digit growth in EPS. However, initiatives focused on enhancing Branded growth, increasing Pay with Venmo usage, and expanding Fastlane will likely necessitate a period of patience extending into late 2025 and 2026.
Following PayPal's third-quarter report, the company's shares saw a decrease of 4%, which analysts view as a positive sign given the stock's recent performance. Investors are factoring in the company's performance that surpassed consensus estimates on significant transaction margin dollars and adjusted earnings, leading to an enhanced outlook for FY24. Analysts note that although the financial targets for fiscal 2025 appear to be well-positioned, the expectations for the company's operational performance have increased.
PayPal's robust Q3 performance further illustrates the company's effective execution of its turnaround strategy. Its affiliation with higher-income groups may offer additional resilience. The anticipation of comparatively subdued cost growth for 2025, as compared to prior projections, is instrumental to the company's profit expansion, despite a sequential deceleration in volumes.
Here are the latest investment ratings and price targets for $PayPal (PYPL.US)$ from 8 analysts:
Note:
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