🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

PayPal upgraded to “outperform” by Wolfe Research on growth potential

Published 12/13/2024, 09:52 AM
© Reuters
PYPL
-

Investing.com -- Wolfe Research upgraded PayPal Holdings Inc (NASDAQ:PYPL) to "outperform" from "peer perform" and raised its price target to $107, on growth opportunities and operating leverage.

Brokerage highlighted PayPal’s large user base of 220 million monthly active users as a key asset. PayPal's recent focus on monetizing its Venmo and PayPal debit cards and improving branded checkout experiences was noted as a driver for future growth.

“Heading into 2025, we see room for upside given the potential to deliver a cadence of beat-and-raises as PYPL executes on its branded checkout innovations, pricing to value on Braintree, and Venmo monetization,” analyst wrote.

PayPal’s February 2025 Investor Day is expected to outline a path to high single-digit gross profit growth in 2026. Wolfe sees upside to consensus estimates, projecting adjusted earnings per share of $5.61 for 2026, compared to the Street's $5.44.

Brokerage believes the company's cost management efforts and innovations, such as the PayPal Everywhere campaign and upgraded checkout integrations, will support long-term profitability. PayPal’s shares are up 46% year-to-date, outperforming the S&P 500.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.