Needham analyst Mayank Tandon has maintained their neutral stance on PYPL stock, giving a Hold rating today.
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Mayank Tandon has given his Hold rating due to a combination of factors influencing PayPal Holdings. The company reported strong second-quarter results that exceeded market expectations, driven by improved transaction margins and effective cost management. Despite this positive performance and an optimistic outlook for the third quarter, the stock experienced a decline, which can be attributed to a slight deceleration in its branded checkout segment and persistent uncertainties surrounding e-commerce and consumer spending in the latter half of fiscal year 2025.
While Tandon acknowledges the company’s efforts in enhancing transaction margins, fostering product innovation, and returning capital to shareholders, he notes that the stock is trading at an ex-cash FY26 P/E multiple of approximately 12x. With earnings per share growth anticipated to remain modest in the near to medium term, he perceives the risk-reward balance as neutral, justifying the Hold rating.
According to TipRanks, Tandon is an analyst with an average return of -1.6% and a 41.94% success rate. Tandon covers the Technology sector, focusing on stocks such as Genpact, Agilysys, and Par Technology.