Analyst James Faucette from Morgan Stanley maintained a Hold rating on PayPal Holdings and keeping the price target at $75.00.
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James Faucette has given his Hold rating due to a combination of factors surrounding PayPal’s recent partnership with Google. The collaboration aims to leverage Google’s AI capabilities to enhance PayPal’s payment services, but the expected benefits are not anticipated to significantly impact PayPal’s financial performance in the near term.
While the partnership could bolster PayPal’s medium-term targets by integrating its payment solutions across Google’s platforms, the incremental economic benefits are expected to be gradual and modest. The integration of PayPal’s Branded Checkout is unlikely to drive substantial growth this year, and the overall contribution to PayPal’s profit and loss statement is expected to remain limited in the short term. Therefore, despite the strategic advantages, the immediate financial impact is not sufficient to warrant a more positive rating.
Based on the recent corporate insider activity of 51 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.