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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Paypal Holdings, Inc.
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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Paypal Holdings, Inc.
May 25, 2025 10:42 PM

12:40 PM EDT, 04/29/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We reduce our 12-month target price by $16 to $84, applying a forward P/E of 15.3x our 2026 EPS estimate, discounted to PYPL's historical averages given slower payment volume growth as well as rising tariff and economic uncertainty. We raise our 2025 EPS view to $5.11 from $5.09 and reduce 2026's by $0.05 to $5.49. PYPL posted Q1 adjusted EPS of $1.33 versus $1.08 a year ago, $0.17 above consensus. Although revenue growth came in weak (+2% Y/Y vs. +4% in the prior quarter and +10% a year ago), PYPL's push to improve profitability is yielding results. Perhaps the most exciting development is PYPL's recent success with Venmo as we have historically been frustrated with its lack of monetization. Signs of improvement were evident in Q1 as Venmo's revenue growth rate of 20% Y/Y dwarfed its total payment volume growth of 10%. Notably, Venmo debit card monthly active users surged 40% and the runway remains immense as penetration sits at just 6% of Venmo users.

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