In a report released today, Gustavo Gala from Monness reiterated a Buy rating on PayPal Holdings (PYPL – Research Report), with a price target of $120.00.
Gustavo Gala has given his Buy rating due to a combination of factors that highlight PayPal’s strong growth potential and strategic initiatives. The company is expected to see significant growth in transaction margins and earnings per share by 2027, driven by enhancements in their checkout process and increased monetization of Venmo. PayPal’s partnership with VeriFone to expand into brick-and-mortar locations and the introduction of new functionalities for merchants are expected to enhance customer engagement and drive revenue growth.
Furthermore, the company’s focus on Buy Now, Pay Later services and the integration of agentic AI to personalize consumer experiences are seen as key growth drivers. PayPal’s strategic restructuring and platformization efforts are anticipated to improve cost structures and speed up product iterations, leading to better-targeted offerings and deeper customer engagement. With a strong financial outlook and a solid plan for sustainable growth, PayPal’s shares are considered undervalued, making it an attractive investment opportunity.
According to TipRanks, Gala is a 3-star analyst with an average return of 4.4% and a 50.94% success rate. Gala covers the Technology sector, focusing on stocks such as Euronet Worldwide, International Money Express, and Block.
In another report released today, Citi also maintained a Buy rating on the stock with a $98.00 price target.