KeyBanc maintains PayPal stock at Sector Weight ahead of 4Q results

Published 28/01/2025, 14:14
KeyBanc maintains PayPal stock at Sector Weight ahead of 4Q results

In summary, while KeyBanc foresees a solid fourth-quarter report from PayPal (NASDAQ:PYPL), now a $90.47 billion market cap company, the firm remains cautious and retains a neutral "Sector Weight" stance on the stock, with a watchful eye on the forthcoming fiscal guidance and investor day for further direction. InvestingPro subscribers can access additional insights through 8 more exclusive ProTips and detailed financial metrics to make more informed investment decisions.

The analysts, however, expressed caution regarding PayPal's outlook, anticipating that the company's initial fiscal year 2025 transaction margin dollar growth guidance will likely be conservative. They expect the guidance to be in the mid-single-digit (MSD) range, which may fall short of more optimistic expectations for high-single-digit (HSD) growth. Concerns stem from recent foreign exchange movements that could pose a greater challenge than previously thought.

The focus of investors, beyond the interest in PayPal's Branded checkout performance during the holiday period, is expected to swiftly shift to the fiscal year 2025 guidance and projections for the upcoming investor day on February 25, 2025.

In summary, while KeyBanc foresees a solid fourth-quarter report from PayPal, now a $90.47 billion market cap company, the firm remains cautious and retains a neutral "Sector Weight" stance on the stock, with a watchful eye on the forthcoming fiscal guidance and investor day for further direction. InvestingPro subscribers can access additional insights through 8 more exclusive ProTips and detailed financial metrics to make more informed investment decisions.

In summary, while KeyBanc foresees a solid fourth-quarter report from PayPal, now a $90.47 billion market cap company, the firm remains cautious and retains a neutral "Sector Weight" stance on the stock, with a watchful eye on the forthcoming fiscal guidance and investor day for further direction. InvestingPro subscribers can access additional insights through 8 more exclusive ProTips and detailed financial metrics to make more informed investment decisions.

In other recent news, PayPal has been the center of several significant developments. TD Cowen analyst Bryan Bergin has raised the price target for PayPal stock to $90 while retaining a hold rating. Bergin noted that PayPal's fourth-quarter activity had slightly exceeded expectations, suggesting potential upside for the company's total payment volume growth. In contrast, Jefferies has maintained a hold rating on PayPal, emphasizing the importance of the company's branded Total (EPA:TTEF) Payment Volume (TPV) growth for its future success.

On the other hand, Susquehanna analysts have increased their price target on PayPal shares from $94 to $101, maintaining a positive rating due to the company's consistent financial performance and potential for sustained mid-single-digit growth. Keefe, Bruyette & Woods (KBW) has also expressed optimism about PayPal's ability to surpass gross profit growth expectations for 2025.

In terms of company news, PayPal's Executive VP has recently departed, leaving with a severance package as per the company's Executive Change in Control and Severance Plan. The company has yet to announce a successor. Lastly, PayPal is facing a lawsuit alleging racial bias in its investment program. These are the recent developments surrounding PayPal.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.