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On Friday, Mizuho (NYSE:MFG) Securities reiterated its Outperform rating on PayPal (NASDAQ:PYPL) with a steady price target of $96.00, significantly above the current price of $61.71. According to InvestingPro data, PayPal’s stock is currently showing oversold conditions based on RSI indicators, while trading at a notable discount to analyst targets ranging from $70 to $125. The firm’s analysis of e-commerce sales trends at key PayPal merchant partners indicates that concerns about PayPal’s Branded Checkout losing market share to competitors such as Apple (NASDAQ:AAPL) Pay may be unfounded.
The assessment by Mizuho focused on the performance of PayPal’s Branded Checkout feature during the fourth quarter of 2024. It was observed that the growth in Branded Checkout’s Total (EPA:TTEF) Payment Volume (TPV) was in alignment with the broader index, both showing approximately 6% growth. This performance aligns with PayPal’s overall revenue growth of 6.8% in the last twelve months, generating $31.8 billion in revenue. This pattern is not new but reflects a consistent trend where PayPal maintains its share among key e-commerce partners.
The commentary provided by the firm underscores the belief that PayPal’s position in the market remains robust despite the competitive pressures. This perspective is based on proprietary analysis, which has led to the reaffirmation of the positive outlook for PayPal’s stock.
PayPal’s performance is closely linked to its ability to retain and grow its presence on merchant platforms, which is a critical aspect of the company’s business model. The findings from Mizuho suggest that PayPal is managing to hold its ground in this area.
The Outperform rating is indicative of Mizuho’s confidence in PayPal’s potential to outperform the general market or its sector peers. The reaffirmed price target of $96.00 reflects the firm’s assessment of PayPal’s value based on their analysis.
Investors and market watchers often look to such ratings and price targets from financial firms to gauge the market sentiment and potential performance of a company’s stock. Mizuho’s latest assessment provides a snapshot of PayPal’s standing from the perspective of one major financial institution.
In other recent news, PayPal is set to launch its advertising platform in the United Kingdom (TADAWUL:4280), expanding a service that began in the United States in 2024. This move is part of PayPal’s growth strategy and will allow UK customers to see personalized ads based on their previous purchases starting in July. Meanwhile, Mizuho Securities maintained an Outperform rating on PayPal, with a price target of $96, citing the growth potential of the Pay with Venmo service and its impact on PayPal’s transaction margins. In contrast, Bernstein adjusted its price target for PayPal from $94 to $80, keeping a Market Perform rating due to uncertainties in the digital payments sector and the company’s ambitious future goals. Wolfe Research also revised its price target for PayPal, lowering it from $90 to $85, while maintaining an Outperform rating, reflecting concerns about macroeconomic conditions affecting consumer behavior. Despite these differing outlooks, Bernstein highlighted the importance of PayPal’s international branded business, suggesting that international markets will play a crucial role in the company’s growth strategy.
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