Mizuho Securities analyst Dan Dolev has maintained their bullish stance on PYPL stock, giving a Buy rating yesterday.
Dan Dolev has given his Buy rating due to a combination of factors that suggest PayPal Holdings’ growth prospects are promising. The company’s medium-term guidance, particularly for Branded Total Payment Volume (TPV) growth, has been perceived as aggressive by some. However, upon closer examination, the growth projections for components like Buy Now, Pay Later (BNPL) and Pay with Venmo indicate that the guidance might actually be conservative. The expected compound annual growth rates (CAGRs) for these components are over 20% and 40%, respectively, which supports a robust overall growth outlook.
Moreover, PayPal’s valuation at 17 times the estimated earnings per share for 2026 is considered a modest premium compared to its historical trading premium over peers. This valuation is justified by steady transaction margin growth and promising new initiatives, such as an upgraded user experience and Fastlane. These factors contribute to a price target of $96, reinforcing the Buy rating as PayPal is poised to capitalize on its strategic initiatives and market position.
Dolev covers the Technology sector, focusing on stocks such as Robinhood Markets, Affirm Holdings, and Strategy. According to TipRanks, Dolev has an average return of 1.3% and a 50.72% success rate on recommended stocks.