Analyst Jason Kupferberg of Bank of America Securities reiterated a Buy rating on PayPal Holdings (PYPL – Research Report), reducing the price target to $93.00.
Jason Kupferberg has given his Buy rating due to a combination of factors including PayPal’s strong brand, solid balance sheet, and the potential for improvement in button trends. Despite the macroeconomic challenges and low expectations for the first quarter, Kupferberg believes that PayPal’s strategic initiatives could eventually lead to a turnaround in sentiment. He acknowledges that the first quarter might not be a positive catalyst, but he sees the company’s valuation as attractive with a price-to-earnings ratio of 12.5x for 2025 and 11.2x for 2026.
While there are downside risks to PayPal’s 2025 outlook due to macroeconomic uncertainties and potential impacts on consumer spending, Kupferberg remains optimistic about the company’s long-term prospects. He notes that the expiration of the China de minimis exception could pose a challenge, but he is comfortable with the consensus estimates for total payment volume and earnings per share for the first quarter. Overall, Kupferberg maintains his Buy rating, albeit with a slightly reduced price objective of $93, reflecting trimmed expectations amid macro risks.
In another report released on April 9, Susquehanna also maintained a Buy rating on the stock with a $94.00 price target.
Based on the recent corporate insider activity of 30 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.