Peeling Back The Layers: Exploring PayPal Holdings Through Analyst Insights

During the last three months, 23 analysts shared their evaluations of PayPal Holdings PYPL, revealing diverse outlooks from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 5 12 6 0 0
Last 30D 0 1 0 0 0
1M Ago 2 7 4 0 0
2M Ago 0 3 2 0 0
3M Ago 3 1 0 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $78.78, a high estimate of $95.00, and a low estimate of $69.00. This current average has increased by 5.11% from the previous average price target of $74.95.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of PayPal Holdings among financial experts is revealed through an in-depth exploration 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
Tien-Tsin Huang JP Morgan Raises Overweight $80.00 $77.00
Kazuya Nishimura Daiwa Capital Raises Outperform $72.00 $68.00
Ramsey El-Assal Barclays Raises Overweight $85.00 $81.00
Bryan Bergin TD Cowen Raises Hold $70.00 $68.00
Andrew Bauch Wells Fargo Raises Equal-Weight $70.00 $65.00
Colin Sebastian Baird Raises Outperform $80.00 $77.00
Timothy Chiodo UBS Raises Neutral $72.00 $71.00
Daniel Perlin RBC Capital Maintains Outperform $84.00 $84.00
Paul Golding Macquarie Raises Outperform $90.00 $85.00
Rufus Hone BMO Capital Raises Market Perform $72.00 $65.00
Anthony Butler Susquehanna Raises Positive $83.00 $71.00
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 adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to PayPal Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of PayPal Holdings compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for PayPal Holdings's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of PayPal Holdings's market position. Stay informed and make well-informed 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.

Financial Insights: PayPal Holdings

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: PayPal Holdings's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 8.21%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 14.31%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): PayPal Holdings's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 5.46%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): PayPal Holdings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.35%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: PayPal Holdings's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.47.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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

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