PayPal Shares Tank After Q3 Results, Analysts Say Management Is ‘Executing Well’ On Re-Alignment Initiatives
Shares of PayPal Holdings Inc (NASDAQ:PYPL) dropped in price on Wednesday after the company reported downbeat third-quarter revenues.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
- Canaccord Genuity analyst Joseph Vafi maintained a Buy rating, while raising the price target from $80 to $96.
- Goldman Sachs analyst Will Nance reiterated a Neutral rating, while lifting the price target from $79 to $87.
- BMO Capital Markets analyst Rufus Hone reaffirmed a Market Perform rating, while raising the price target from $73 to $82.
- RBC Capital Markets analyst Daniel Perlin maintained an Outperform rating, while raising the price target from $84 to $89.
- Morgan Stanley analyst James Faucette reiterated an Equal-Weight rating, while raising the price target from $71 to $76.
- Needham analyst Mayank Tandon reaffirmed a Hold rating on the stock.
- KeyBanc analyst Alex Markgraff maintained a Sector Weight rating on the stock.
Check out other analyst stock ratings.
Canaccord Genuity: “Q3 marked another solid quarter of progress in PayPal’s business realignment with new CEO Alex Chriss at the helm now for about a year,” Vafi wrote in a note. While margins at Braintree improved, this is coming with some contracts being negotiated down in overall volumes, which is a headwind to the top line, he added.
Management is focusing on finetuning PayPal’s entire product portfolio, “including a new strategy for pricing unbranded checkout, a more streamlined branded checkout experience, expanding TAM beyond ecommerce, and more monetization for Venmo,” the analyst stated. These initiatives could generate “profitable payment volume …
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