PayPal stock rating reiterated by RBC Capital on monetization strategy

Published 26/06/2025, 14:22
PayPal stock rating reiterated by RBC Capital on monetization strategy

Investing.com - RBC Capital maintained its Outperform rating and $88.00 price target on PayPal (NASDAQ:PYPL) stock Thursday. Currently trading at $73.07, the prominent financial services player shows a P/E ratio of 16.23, with InvestingPro analysis indicating the stock is currently undervalued.

The research firm expressed increased conviction in PayPal’s profitable growth story following the company’s keynote presentation at the RBC Fintech Conference.

RBC Capital highlighted three key areas supporting its positive outlook, with Venmo monetization through its card and Pay with Venmo offerings being the first driver of potential growth.

The firm also pointed to improvements in PayPal’s branded checkout product, which is driving total payment volume acceleration and monthly active account growth.

RBC Capital noted that PayPal’s unbranded offerings are now contributing to transaction margin dollar growth through the company’s price-to-value strategy, with additional growth potential from international expansion and value-added services penetration.

In other recent news, PayPal Holdings, Inc. reported several key developments. The company announced multi-year agreements with the Big Ten and Big 12 Conferences to facilitate institutional payments to student-athletes, marking a significant shift in college athletics. Additionally, PayPal expanded its digital payment options by partnering with Taco Bell, allowing customers to use PayPal and Venmo for payments and offering cash back incentives. PayPal also appointed Deirdre Stanley, a former Estée Lauder executive, to its Board of Directors, bringing extensive expertise in consumer brands and technology to the company.

UBS maintained its Neutral rating and $75.00 price target on PayPal, emphasizing the varied profit contributions from different Total (EPA:TTEF) Payment Volume categories. Furthermore, PayPal announced plans to expand its PayPal USD (PYUSD) stablecoin to the Stellar blockchain network, pending regulatory approval. This expansion aims to leverage Stellar’s infrastructure for faster and more cost-effective transactions. These recent developments highlight PayPal’s ongoing efforts to innovate and expand its services across various sectors.

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