In a report released today, James Faucette from Morgan Stanley maintained a Hold rating on PayPal Holdings, with a price target of $74.00.
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James Faucette’s rating is based on a combination of factors that highlight both challenges and potential within PayPal Holdings. The company’s Online Branded Checkout growth remains in the mid-single-digit range, with a 5% increase in the third quarter, which is consistent with previous quarters. This stagnation is attributed to global consumer spending weaknesses and smaller basket sizes, despite some easing of tariff-related issues with Asian merchants.
Additionally, the uncertain macroeconomic environment and the comparison to a strong previous holiday season contribute to expectations of deceleration in the fourth quarter. Although PayPal has initiatives like Pay With Venmo and modernized checkout systems showing promise, these have not yet significantly impacted growth. Furthermore, anticipated increases in expenses to support growth initiatives add to the cautious outlook, leading to a Hold rating as investors await clearer signs of sustainable improvement.
According to TipRanks, Faucette is a 4-star analyst with an average return of 4.5% and a 62.27% success rate. Faucette covers the Technology sector, focusing on stocks such as Endava, Block, and Accenture.