PayPal’s Strategic Positioning and Operational Improvements Under New Leadership Drive Buy Rating

Joseph Vafi, an analyst from Canaccord Genuity, maintained the Buy rating on PayPal Holdings (PYPL – Research Report). The associated price target remains the same with $96.00.

Joseph Vafi has given his Buy rating due to a combination of factors that highlight PayPal’s strategic positioning and operational improvements. The company has shown steady progress in its business realignment under the leadership of its new CEO, Alex Chriss, focusing on enhancing its value proposition in the maturing ecommerce market. PayPal’s emphasis on higher-margin business and transaction margin dollar growth, particularly from branded and unbranded payment volumes, is a significant factor in this positive outlook.
Moreover, the company has demonstrated strong performance in branded checkout volume growth and Buy Now, Pay Later (BNPL) services, which have seen substantial year-over-year growth. PayPal’s efforts to upsell unbranded payment volumes with value-added services and the progress in monetizing Venmo also contribute to its promising prospects. Despite potential revenue headwinds, PayPal’s robust cash-flow generation and strategic share buybacks further support the Buy rating, as the company continues to focus on bottom-line results and repositioning efforts.

In another report released today, Barclays also maintained a Buy rating on the stock with a $80.00 price target.

PYPL’s price has also changed moderately for the past six months – from $80.280 to $66.320, which is a -17.39% drop .