- Needham analyst Mayank Tandon maintained a Hold on PayPal Holdings Inc PYPL.
- Tandon hails PYPL's solid 3Q results and management's cost-saving efforts, which helped drive operating margins 200 bps above his estimate.
- While cost efficiency is helping improve profitability, the 4Q revenue outlook is below consensus due to FX headwinds and mixed e-commerce volumes.
- Also Read: 3 Bitcoin, Fintech Plays That Can 2x From Current Levels? Why This Analyst Is Bullish On Block, Coinbase, PayPal
- In addition, the choppy macro backdrop continues to pressure payment volumes, which will likely weigh on NT revenue growth.
- RBC Capital analyst Daniel Perlin reiterated Market Perform and the $118 price target.
- Perlin highlighted how cost management drove the EPS with TPV affected by FX, while OVAS delivered the revenue upside.
- However, despite the above, the e-commerce slowdown affected growth while holiday ramp expectations are due, leading to a cautious outlook.
- Raymond James analyst John Davis reiterated Outperform and cut the price target from $123 to $107.
- Davis noted the mixed 3Q results and disappointing 4Q guidance.
- He expects the outlook to prove conservative outside of a significant near-term slowdown.
- With EPS mainly likely unchanged, he continues to believe estimates are biased higher in a variety of macro scenarios and see PYPL as a solid defensive play (secular growth, FCF generation, clean balance sheet) in a volatile environment.
- Morgan Stanley analyst James Faucette remained Overweight with a $136 price target.
- He highlighted the modest adjusted EPS growth as soft e-commerce trends offset faster margin gains.
- PYPL is still well positioned to outpace underlying eCommerce, while higher rates and more limited capital availability make it an okay time to expand margins.
- Price Action: PYPL shares traded lower by 5.23% at $72.55 on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in