In a report released today, Trevor Williams from Jefferies maintained a Hold rating on PayPal Holdings (PYPL – Research Report), with a price target of $65.00.
Trevor Williams’s rating is based on a combination of factors, including the challenging economic environment and the potential slowdown in branded Total Payment Volume (TPV) growth. The shift towards non-discretionary spending and the early stages of Apple Pay’s desktop presence contribute to this cautious outlook. Additionally, the exposure to China-US cross-border transactions presents an emerging risk, which could impact PayPal’s financial performance if these volumes decline significantly. Despite these challenges, there is still a possibility for modest growth in credit revenue within Other Value-Added Services (OVAS) and a slightly better than expected Total Merchant Services (TM$) growth.
Williams also notes that while there are risks, such as potential tariffs and changes in cross-border trade dynamics with China, PayPal’s earnings per share (EPS) for the fiscal year may not be significantly affected. The analyst suggests that even if growth is somewhat reduced due to these factors, the overall financial performance might still align with the lower end of the projected growth range. This balanced view leads to the Hold rating, reflecting both the potential risks and the opportunities for slight growth.
In another report released on April 11, BMO Capital also maintained a Hold rating on the stock with a $83.00 price target.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PYPL in relation to earlier this year.