TD Cowen analyst Bryan Bergin maintained a Hold rating on PayPal Holdings (PYPL – Research Report) yesterday and set a price target of $83.00.
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Bryan Bergin has given his Hold rating due to a combination of factors pertaining to PayPal Holdings. One of the key considerations is the company’s current transition phase under new management, which is working on aligning their strategic and innovation efforts with a clearly defined financial framework. This transition year poses challenges as PayPal aims to balance its strategic goals with realistic medium-term financial guidance to satisfy investor expectations.
Bergin also highlights the mixed results from the recent fourth-quarter performance, which has left investors uncertain about the company’s growth trajectory. Additionally, there are questions regarding PayPal’s ability to sustain growth in its branded segment and manage transaction margins effectively. The analyst also notes that while PayPal’s capital allocation plans, such as the announced $15 billion share buyback, are positive, there remain uncertainties about the company’s approach to mergers and acquisitions, as well as potential portfolio adjustments. These factors collectively contribute to the Hold rating as investors await further clarity and proof of execution from PayPal’s management.
In another report released on February 19, Goldman Sachs also reiterated a Hold rating on the stock with a $90.00 price target.