In a report released today, Harshita Rawat from Bernstein maintained a Hold rating on PayPal Holdings (PYPL – Research Report), with a price target of $94.00.
Harshita Rawat’s rating is based on the current uncertainty surrounding PayPal Holdings’ future performance. While the company has laid out ambitious targets and a compelling vision for its evolution into a comprehensive commerce platform, there is a lack of conviction about whether these goals will be achieved. The new leadership has potential, but the execution of key performance indicators and adaptation to the changing competitive landscape remain uncertain.
Furthermore, despite PayPal’s attractive valuation metrics, such as a low price-to-earnings ratio and a strong free cash flow yield, the market dynamics and competitive pressures from other payment solutions like Apple Pay and Shop Pay add to the uncertainty. As a result, the Hold rating reflects a cautious stance, awaiting more concrete evidence of successful execution and strategic differentiation before recommending a more decisive investment action.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $83.00 price target.