In a report released today, Andrew Schmitt from Citi maintained a Buy rating on PayPal Holdings (PYPL – Research Report), with a price target of $98.00.
Andrew Schmitt’s rating is based on PayPal’s strategic transition to what is termed as ‘PayPal 3.0,’ which was highlighted during their recent investor day. The company is focusing on enhancing its operations across both consumer and merchant platforms, working more cohesively to drive growth. This transition includes expanding their branded checkout experiences and improving omni-channel capabilities, which are expected to significantly boost transaction volumes and margins.
Another factor contributing to the Buy rating is the potential of Braintree, PayPal’s enterprise e-commerce solution, to enhance its competitiveness through tailored market approaches and improved omni-channel capabilities. The anticipated high-single-digit growth in core transaction margin dollars by fiscal year 2027, along with the expected rollout of new checkout experiences globally, supports a positive outlook for PayPal’s financial performance. These strategic initiatives, coupled with a projected share price return of 32.3%, underpin Schmitt’s optimistic view on PayPal’s stock.
Schmitt covers the Technology sector, focusing on stocks such as Fiserv, Corpay Inc, and SS&C Technologies Holdings. According to TipRanks, Schmitt has an average return of 5.1% and a 53.62% success rate on recommended stocks.
In another report released today, Mizuho Securities also reiterated a Buy rating on the stock with a $96.00 price target.