Shares of fintech stock PayPal Holdings (NASDAQ: PYPL) climbed in the morning trading on Tuesday following an upgrade from top-rated Truist analyst Andrew Jeffrey. The analyst upgraded the stock to a Buy from a Hold with a price target of $95.
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Jeffrey’s price target implies an upside potential of 28.1% at current levels.
The analyst outlined his reasons for the upgrade in his research note and believed that Wall Street analysts’ revenue estimates were “reasonable”. Jeffrey is also of the opinion that there is the possibility of new leadership at the company’s helm this year.
The analyst pointed out, “We would not be surprised by C-suite changes this year, following CFO John Rainey’s departure.” Jeffrey added that CEO Dan Schulman will be 65 this year, and has led PYPL since September 2014.
Jeffrey commented, “A new CEO would be positioned to build on Mr. Schulman’s success, in our opinion, while also wielding a freer M&A hand, perhaps moving the company into card present acquiring, expanding its TAM (total addressable market) and boosting terminal revenue/EPS growth.”
The analyst is also upbeat about the $6 billion of cash on PYPL’s balance sheet which accords it flexibility when it comes to stock buyback and M&A.
Besides Jeffrey, other analysts are also bullish about PYPL stock with a Strong Buy consensus rating based on 21 Buys and seven Holds.
