PayPal shares rise on optimistic analyst forecasts
2023.01.03 10:17
PayPal shares rise on optimistic analyst forecasts
Budrigannews.com – PayPal shares (NASDAQ:) are up almost 4% today because analysts at Truist Securities upgraded them from Hold to Buy.
In addition, the price target was increased from $75 to $95 per share by the analysts, implying an upside potential of more than 30% in comparison to Friday’s closing price. They emphasize “resurgent eCommerce” despite acknowledging negative sentiment regarding PayPal’s sustained long-term organic revenue growth.
“Importantly, Street rev growth estimates now reflect this view, in contrast to the previous year, when we were significantly below consensus. “We contend eComm will take share from card present, despite current macro challenges eCommerce vol/rev growth,” they wrote in an upgrade note.
The analysts are now certain that revenue projections are once more “reasonable.” In addition, they point to an “record-deep NTM P/E discount to Mastercard (NYSE:),” an M&A/buyback flexibility, expected above-consensus EPS in 2023 and 2024, and the possibility of new leadership. as the catalysts for the upgrade.
“Another President would be situated to expand on Mr. Schulman’s prosperity, as we would like to think, while additionally using a more liberated M&A hand, maybe moving the co into card present gaining, extending its Hat and helping terminal fire up/EPS development,” they added.
Over 60% of PayPal’s stock fell last year.
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