tiprankstipranks
Ratings

Balanced Hold Rating on PayPal Due to Mixed Financial Performance and Cautious Outlook

Balanced Hold Rating on PayPal Due to Mixed Financial Performance and Cautious Outlook

Andrew Bauch, an analyst from Wells Fargo, maintained the Hold rating on PayPal Holdings (PYPLResearch Report). The associated price target remains the same with $80.00.

Discover the Best Stocks and Maximize Your Portfolio:

Andrew Bauch’s rating is based on PayPal Holdings’ mixed financial performance and outlook. While the company reported a solid fourth quarter with revenue and earnings exceeding expectations, there are areas of uncertainty that warrant a Hold rating. The guidance for 2025 suggests moderate growth, with adjusted EPS expected to increase by 6%-10%, which is above consensus but aligns with internal projections. Additionally, the expected growth in Total Payment Volume (TPV) and non-GAAP operating expenses indicates a stable yet cautious outlook for the upcoming year.
Furthermore, PayPal’s forecasted buybacks and free cash flow are promising, but potential challenges remain, such as elevated buyside expectations and the need for further clarity on branded growth trajectory. The consistent positive net new active accounts signal underlying strength, yet the market response has been tepid, reflecting uncertainty about sustaining this momentum. Thus, the Hold rating reflects a balanced view of the company’s prospects, acknowledging both its achievements and the challenges it faces.

Bauch covers the Technology sector, focusing on stocks such as Block, Shift4 Payments, and Affirm Holdings. According to TipRanks, Bauch has an average return of 2.8% and a 50.83% success rate on recommended stocks.

1