Demystifying PayPal Holdings: Insights From 12 Analyst Reviews

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12 analysts have shared their evaluations of PayPal Holdings PYPL during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 5 5 2 0 0
Last 30D 1 1 0 0 0
1M Ago 1 2 0 0 0
2M Ago 1 2 2 0 0
3M Ago 2 0 0 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $79.5, along with a high estimate of $95.00 and a low estimate of $69.00. This current average has increased by 4.33% from the previous average price target of $76.20.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

A clear picture of PayPal Holdings's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Joseph Vafi Canaccord Genuity Maintains Buy $80.00 $80.00
Harshita Rawat Bernstein Raises Outperform $78.00 $71.00
Gus Gala Monness, Crespi, Hardt Raises Buy $95.00 $88.00
Sanjay Sakhrani Keefe, Bruyette & Woods Maintains Outperform $78.00 $78.00
Anthony Butler Susquehanna Maintains Positive $71.00 $71.00
Daniel Perlin RBC Capital Maintains Outperform $84.00 $84.00
David Togut Evercore ISI Group Raises In-Line $70.00 $65.00
Will Nance Goldman Sachs Announces Neutral $69.00 -
Sanjay Sakhrani Keefe, Bruyette & Woods Maintains Outperform $78.00 $78.00
Ashwin Shirvaikar Citigroup Raises Buy $81.00 $79.00
Soomit Datta New Street Research Announces Buy $80.00 -
Dan Dolev Mizuho Raises Buy $90.00 $68.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to PayPal Holdings. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of PayPal Holdings compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of PayPal Holdings's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into PayPal Holdings's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on PayPal Holdings analyst ratings.

Delving into PayPal Holdings's Background

PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 426 million active accounts at the end of 2023. The company also owns Venmo, a person-to-person payment platform.

PayPal Holdings's Economic Impact: An Analysis

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: PayPal Holdings displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 9.36%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: PayPal Holdings's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 11.53%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 4.25%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): PayPal Holdings's ROA stands out, surpassing industry averages. With an impressive ROA of 1.07%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: PayPal Holdings's debt-to-equity ratio is below the industry average at 0.47, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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