Shares of the multinational fintech company PayPal (PYPL) have gained about 12% over the past two days after it reported strong second-quarter results on July 30. Post Q2 results, analysts are largely divided on the stock. Five analysts recommend buying PYPL stock, while another five have reiterated a Hold rating.
Wall Street’s Mixed Views on PayPal
Four-star rated Bernstein analyst Harshita Rawat upgraded the rating on PayPal stock to Buy and increased the price target to $78 (18.6% upside) from $71. The analyst believes that under new management, PayPal has shown stronger product execution and is projected to maintain mid-single-digit gross profit growth despite competitive pressures.
Echoing similar confidence in PayPal, Dan Dolev from Mizuho Securities maintained a Buy rating on the stock. The analyst is optimistic about the company’s future due to improving transaction margins and growing overall profitability.
Meanwhile, 4-star rated TD Cowen analyst Bryan Bergin assigned a Hold rating on PYPL and lifted the price target to $70 (6.4% upside) from $68. Bergin prefers to stay on the sidelines, citing PayPal’s lagging branded transaction growth compared to e-commerce and concerns over potential market share loss amid rising mobile commerce.
Is PayPal a Buy, Sell, or Hold?
Overall, Wall Street analysts are cautiously optimistic about PYPL’s prospects. PYPL is a Moderate Buy based on 14 Buy and 17 Hold recommendations. The analysts’ average price target on PayPal stock of $74.92 implies 13.89% upside potential from current levels. Year-to-date, the stock has gained 7.1%.
