In a recent update, Redburn Atlantic has revised its price target for PayPal (PYPL, Financial), bringing it down from $70 to $66 while maintaining a Neutral rating on the company's shares. According to analyst Fahed Kunwar, the overall payments sector, which includes companies like PayPal, is largely misunderstood by the market.
Redburn Atlantic suggests that despite misconceptions, the sector remains attractively priced, with low earnings risk and robust cash returns. The firm believes that concerns regarding the economic cycle's impact on payment companies are not fully justified. Redburn contends that the payment sector aligns with nominal consumer spending, implying that any upcoming recession will affect transaction volumes rather than their nominal value.
While the firm has adjusted its financial projections for several companies in the sector to account for the anticipated economic slowdown, it still highlights Mastercard and Toast as its preferred stocks. By focusing on the potential resilience of these firms, Redburn aims to reassure investors about the sector's long-term viability.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 36 analysts, the average target price for PayPal Holdings Inc (PYPL, Financial) is $87.61 with a high estimate of $125.00 and a low estimate of $64.00. The average target implies an upside of 45.44% from the current price of $60.24. More detailed estimate data can be found on the PayPal Holdings Inc (PYPL) Forecast page.
Based on the consensus recommendation from 46 brokerage firms, PayPal Holdings Inc's (PYPL, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for PayPal Holdings Inc (PYPL, Financial) in one year is $95.56, suggesting a upside of 58.63% from the current price of $60.24. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the PayPal Holdings Inc (PYPL) Summary page.
