A Top-rated analyst, Bryan Keane from Deutsche Numis, is bullish on PayPal Holdings (PYPL). Also, his price target of $74 per share indicates an upside potential of about 21%. The analyst believes that the company’s strategic initiatives position it well for future growth. Further, Keane is impressed by PayPal’s strong performance in Q1.
PYPL is a digital payment platform provider. Its solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant products.
Interestingly, Keane’s track record on PayPal is noteworthy, with a 52% success rate on his calls for the stock. This implies that copying his trades and holding each position for one year would result in about 52% of your transactions generating a profit, with an average return of 3.97% per trade. (See the image below.)
Near-Term Optimism
Keane is optimistic about the company’s near-term prospects. He expects PYPL to report better-than-expected revenue and earnings in the second quarter. The analyst continues to be impressed with the company’s efforts to address key concerns, such as reclaiming lost market share and increasing profits through innovative products like PayPal’s new Fastlane.
Moreover, the analyst highlighted management’s focus on improving the high-margin branded checkout business. Also, Keane anticipates that user-oriented enhancements, such as an improved mobile experience, rewards programs, and personalized offers, will help drive adoption rates.
The company is expected to release its Q2 results on July 30, 2024.
Is PayPal a Buy or Sell?
On TipRanks, PayPal has a Moderate Buy consensus rating based on 13 Buy and 16 Hold recommendations. The analysts’ average price target on PayPal stock of $74.96 implies a 22.4% upside potential. Shares of the company have declined 1.37% over the past six months.
