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PayPal Garners Plaudits From Analysts After Investor Day

PayPal shares have soared 54% over the past six months as e-commerce has exploded during the pandemic.
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PayPal  (PYPL) - Get PayPal Holdings Inc. Report shares rose Friday as analysts reacted favorably to PayPal’s commentary in its investor/analyst day on Thursday.

The stock recently traded at $292.69, up 2.69%. It has soared 54% over the past six months as e-commerce has exploded during the Covid pandemic.

J.P. Morgan analysts lifted their price target to $310 from $249, keeping an overweight rating. “PYPL remains one of our top picks for 2021. Impressive growth targets at scale puts PayPal in great company,” they said. “PYPL sees 20% and 22% compounded revenue and EPS growth (all organic) through 2025.”

Wedbush kept its outperform rating and $300 price target. That’s based on “accelerating organic top line/volume growth rate; further expansion in margins, as PayPal’s revenue/volume growth will benefit from diminishing EBAY headwinds; as well as expanding user engagement/monetization metrics.”

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Credit Suisse raised its price target to $310 from $275, keeping its outperform rating. “PayPal’s medium-term outlook solidifies its position in a rare group of companies that can compound 20%+ topline at this scale,” the bank’s analysts wrote.

“The business remains well positioned within a large and constantly expanding (i.e., bill-pay, in-store, China) addressable market ( about $5 trillion online ex-bill-pay), alongside a long list of ‘call options’ that are beginning to show signs of traction," they added.

Meanwhile, in an interview with founder Jim Cramer on Thursday, PayPal Chief Executive Dan Schulman said the company’s strength lies in its brand and its advantage is data. The platform processes over 30,000 transactions a minute and that data has allowed it to build in 130 security and privacy checks.