New Street Research starts PayPal at Buy as company pivots to value

Published 31/05/2024, 12:48
© Reuters.

PayPal (NASDAQ:PYPL) was initiated with a Buy rating and $80 per share price target at New Street Research on Friday.

Analysts at the firm highlighted that almost nine months in, new CEO Alex Chriss is looking to pivot PayPal to value from price and better leverage the company's unique two-sided advantages it has over competitors, Adyen, Stripe & even Apple Pay.

They noted that the first step has been Braintree's "more rational approach to pricing contract renewals – good for all in the market." In addition, Fastlane, a new guest checkout, is seen as potentially lifting unbranded volume (first) and then pricing (to follow).

"Other areas of better monetisation should follow over the next 6-12 months," said New Street, pointing to Venmo (deposit capture), broader debit card adoption and Xoom, PayPal's generally forgotten cross-border currency business.

"2024 is a transition year; we expect to hear news and supportive KPIs on new initiatives before monetisation comes through more in 2025, driving
Transaction margin $ ahead of street estimates," stated the firm.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.