In a recent financial assessment, Susquehanna investment firm has uplifted its price target for Payal and upgraded PayPal (PYPL, Financial) stock to a positive outlook and lifted the price target to $94.00 from $83.00; we pinned our optimism on the firm’s steady transaction through traffic. It cited an 8% rise in the dollar figure of transaction margin this quarter, sustaining the past quarters and progress over the last fiscal.
Placing trust in the new management, PayPal has recorded a steady rise in the number of transaction margin dollars under the threat that the revenues may slowly take a toll on its EPS for 2025. However, PayPal, with its service, Braintree, has had quite a positive influence on the transaction margins. Comparable to the second quarter, the branded volume has risen by approximately 6 percent.
The firm believes that these improvements in transaction margin dollars will drive stronger 2026 adjusted PayPal EBIT margins and EPS. Temperature is detected in the expectations for 2025, although the outlook for 2026 is relatively positively skewed. This outlook adjustment is evident in the report’s raised stock price target.
On the same note, Susquehanna remains optimistic about PayPal’s financial prospects even as it flags a possible two-percent drop in EPS in 2025. Later in the day, notes of the call-back will be provided to interested parties containing more specific information and analysis from Susquehanna, as the firm is known to issue a write-up after rating individual companies.
This article first appeared on GuruFocus.
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