PayPal Holdings: Hold Rating Amid Strategic Progress and Macroeconomic Uncertainty

In a report released today, Bryan Bergin from TD Cowen maintained a Hold rating on PayPal Holdings (PYPL – Research Report), with a price target of $73.00.

Bryan Bergin has given his Hold rating due to a combination of factors influencing PayPal Holdings. The company has shown positive signs by exceeding its first-quarter performance expectations and maintaining stability in consumer and small-to-medium business sectors. However, despite these achievements, PayPal has opted to uphold its fiscal year 2025 outlook to remain cautious amidst macroeconomic uncertainties.
Bergin notes that while PayPal is making progress in its strategic initiatives, such as modernizing its branded checkout and increasing Venmo adoption, there are still concerns about the company’s growth relative to market expectations. The company’s ambitious turnaround strategy requires significant effort, and investors are likely to adopt a ‘wait and see’ approach due to the uncertain macroeconomic environment. Consequently, Bergin maintains a price target of $73 and a Hold rating, reflecting a balanced view of PayPal’s current performance and future prospects.