Morgan Stanley analyst James Faucette has maintained their neutral stance on PYPL stock, giving a Hold rating on February 27.
James Faucette has given his Hold rating due to a combination of factors influencing PayPal Holdings. The company is actively working on initiatives to enhance its Branded Checkout, aiming to improve its competitive position and maintain its market share. Despite the speculation of losing share to competitors, PayPal’s internal data suggests stability in its checkout share across both mobile and desktop platforms.
Additionally, PayPal is focusing on transforming itself from a payments company to a commerce company by leveraging its extensive customer data and AI capabilities. This transformation includes personalized shopping experiences and enhanced fraud optimization. Furthermore, the integration of Pay With Venmo into PayPal’s broader merchant network is expected to expand its acceptance and attract a younger, affluent customer base. However, the pace of monetizing Venmo users and the rollout of new products remains a concern, contributing to the Hold rating.
According to TipRanks, Faucette is a 5-star analyst with an average return of 5.8% and a 65.32% success rate. Faucette covers the Technology sector, focusing on stocks such as Endava, Block, and Affirm Holdings.
In another report released on February 27, Piper Sandler also maintained a Hold rating on the stock with a $76.00 price target.