PayPal (PYPL) Stock Climbs on Q3 Revenue Beat - TheStreet

NEW YORK (TheStreet) -- Shares of PayPal (PYPL) - Get Report  were gaining 7.76% to $43.19 in mid-morning trading on Friday as the company late yesterday reported better-than-expected 2016 fiscal third-quarter revenue of $2.67 billion, beating analysts' projected $2.65 billion.

The company posted in-line earnings of 35 cents per diluted share.

Active customer accounts grew 11% year-over-year to $192 million in the third quarter.

Stifel subsequently raised its rating on the stock to "buy" from "hold" and maintained its $49 price target. 

The firm believes PayPal had a "solid" quarter and should deliver "stable, consistent and robust" growth moving forward, according to TheFly.

Any risk to PayPal has significantly diminished and the firm said it's become more optimistic about the San Jose, CA-based payment platform's long term outlook. 

R.W. Baird analysts said PayPal posted largely in-line results yesterday, driven by secular e-commerce growth and improved market share, TheFly reports. 

The firm has an "outperform" rating and $48 price target. 

Additionally, PayPal announced in a conference call late yesterday that it's working with Alibaba (BABA) to make PayPal a one-click payment option on AliExpress, the Chinese e-commerce company's global marketplace. 

China has become an important market for PayPal, according to the Wall Street Journal. About 40 million users have bought an item from the country using the platform. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

The team rates PayPal as a Hold with a ratings score of C-. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, the team finds that the company's profit margins have been poor overall.

You can view the full analysis from the report here: PYPL

Image placeholder title

PYPL

data by

YCharts