J.P. Morgan analyst Tien Tsin Huang has maintained their bullish stance on PYPL stock, giving a Buy rating today.
Tien Tsin Huang’s rating is based on PayPal’s strategic initiatives and growth potential as outlined during their Investor Day. The company aims to grow in line with the e-commerce sector, which is a significant ambition given the competitive landscape. PayPal’s management is committed to accelerating branded checkout growth and enhancing total payment volume (TPV) to align with e-commerce trends, which is crucial for the company’s evolution from a legacy payment platform to a next-generation commerce facilitator.
Furthermore, PayPal’s management has set a mid-term growth algorithm targeting high single-digit TPV growth and low-teens non-GAAP EPS growth by 2027. This includes accelerating branded TPV growth and improving profitability through enhanced payment service provider (PSP) solutions and value-added services. The focus on better monetizing its extensive consumer and merchant base, along with operating leverage, indicates a strategic approach to achieving sustainable growth, which supports the Buy rating.
In another report released today, Mizuho Securities also reiterated a Buy rating on the stock with a $96.00 price target.