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Investing.com - Truist Securities has maintained its Sell rating and $68.00 price target on PayPal (NASDAQ:PYPL) ahead of the company’s second-quarter earnings report, scheduled for July 29. Currently trading at $74.82 with a P/E ratio of 16.65, InvestingPro analysis indicates PayPal is trading below its Fair Value.
The firm’s analysis indicates expectations aligned with guidance and consensus estimates for the June quarter, noting that a slightly worse net take rate and consistent year-over-year foreign exchange neutral volume growth compared to Q1 is offset by recent weakness in the U.S. dollar.
Truist’s proprietary Card Data suggests PayPal’s year-over-year volume growth in the U.S. remained consistent in Q2 compared to Q1, providing some stability metrics for the payment processor.
The research note highlighted management’s recent positive commentary regarding Venmo trends, including Pay by Venmo and Venmo debit card attach rates, though Truist expressed concern about how increased promotional activity might negatively impact take rates relative to market expectations.
Truist Securities referenced that it had previously addressed recent headlines and improved investor sentiment toward PayPal in its "Single Stock Saturdays" research publication.
In other recent news, PayPal has announced its quarterly results, highlighting several key developments. The company has partnered with Anthropic to integrate its payment services with Claude AI, allowing users to manage transactions and financial insights through conversational commands. Additionally, PayPal has entered into multi-year agreements with the Big Ten and Big 12 Conferences to facilitate payments to student-athletes under a new revenue-sharing model. In a move to expand its digital payment options, Taco Bell has added PayPal and Venmo as payment methods, offering customers cash back on purchases. Furthermore, PayPal has appointed Deirdre Stanley, a former executive from Estée Lauder, to its Board of Directors. RBC Capital has reiterated its Outperform rating for PayPal, citing confidence in the company’s growth strategy following a recent presentation at the RBC Fintech Conference. These developments reflect PayPal’s ongoing efforts to expand its services and strengthen its market position.
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