Raymond James analyst John Davis has maintained their neutral stance on PYPL stock, giving a Hold rating yesterday.
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John Davis has given his Hold rating due to a combination of factors affecting PayPal Holdings. One of the primary concerns is the recent disruption in PayPal payments reported in Germany, where several large banks temporarily halted transactions. Although PayPal has resolved the issue, the potential impact on the third quarter’s Branded Total Payment Volume (TPV) growth remains a point of consideration.
Davis estimates that each day of disruption could result in a 10 basis point headwind to the Branded TPV growth. Given that a significant portion of German e-commerce transactions are processed through PayPal, this disruption could affect overall growth metrics. Despite these concerns, Davis does not anticipate a material impact on PayPal’s transaction margin or earnings per share, which supports the decision to maintain a Hold rating.