SoFi CEO enters prepaid forward contract on 1.5 million shares
Monday - Susquehanna analysts have increased their price target on shares of PayPal (NASDAQ:PYPL) shares from $94.00 to $101.00 while maintaining a Positive rating on the company's stock. The revised target follows a period where PayPal consistently surpassed earnings expectations, marked by three consecutive quarters of "beat and raises."
The firm's analysts have analyzed the components contributing to PayPal's gradual and consistent financial performance improvement. Key factors identified include interest income from customer balances, the success of Branded Checkout, the contributions from Braintree, the popularity of Venmo, and favorable credit and transaction loss performance.
Despite the positive trends, Susquehanna anticipates a potential deceleration of Total (EPA:TTEF) Payment Volume (TM$) growth to 3% in 2025, compared to the 6.9% growth rate experienced in the first nine months of 2024. However, they expect that PayPal will be able to sustain mid-single-digit TM$ growth mid-cycle, supported by potential high-single-digit revenue growth.
The analysts at Susquehanna also predict profitability tailwinds that will drive their increased earnings estimates for PayPal. Their confidence in the company's growth prospects and sustained earnings potential is reflected in the raised price target and the ongoing Positive rating of the stock.
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