In a report released yesterday, Rufus Hone from BMO Capital reiterated a Hold rating on PayPal Holdings (PYPL – Research Report), with a price target of $79.00.
Rufus Hone has given his Hold rating due to a combination of factors that reflect both positive progress and lingering uncertainties. PayPal’s first-quarter results for 2025 were robust, exceeding expectations with higher transaction margin dollars and lower adjusted operating expenses. However, while the company has shown solid progress in its Branded Checkout online growth initiatives, Hone believes that significant acceleration in total payment volume (TPV) is more likely to occur in 2026 rather than in the immediate future.
Despite the limited downside to PayPal’s current valuation, Hone is cautious and seeks further evidence of sustainable growth in Branded Checkout TPV and transaction margin dollars before becoming more optimistic. The reiterated guidance for 2025 appears conservative, with built-in buffers for potential softening in e-commerce and consumer trends in the latter half of the year. While there are positive developments such as the adoption of Buy Now, Pay Later services and the rollout of new experiences in Europe, Hone remains cautious and has adjusted the target price slightly downward, reflecting a more conservative outlook.
Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PYPL in relation to earlier this year.