US stock futures fall ahead of key PCE inflation data
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.
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