Mizuho's Dan Dolev reiterated their Strong Buy rating on PayPal (NASDAQ: PYPL). The analyst also maintained a $92 price target.
In their note, Dolev commented on the impact of Temu, an Amazon-like marketplace for discounted goods from China, on PayPal. According to web traffic analysis, Temu is "rapidly growing in popularity." Dolev pointed out that PayPal's Branded Checkout button, which is considered a "highly profitable" moat, is one of the checkout options on Temu. This has been a key point of debate surrounding PayPal's stock.
The analysis further revealed that traffic from Temu to PayPal has grown 12 times year-over-year. As Temu gains market share, Dolev emphasized that it will become increasingly important to PayPal's Branded Checkout business. This insight sheds light on the potential impact of Temu's growth on PayPal's future performance.
Currently, 75% of top-rated analysts rate PYPL as a Strong Buy or Buy, while 25% see it as a Hold. Notably, no analysts recommend or strongly recommend selling the stock. This indicates a generally positive sentiment among analysts towards PayPal.
Looking ahead, the consensus forecast among analysts suggests that PYPL's upcoming year will deliver earnings per share (EPS) of $4. If these analysts are correct, PYPL's next yearly EPS will be up by 11.4% on a year-over-year basis. This forecast provides investors with a glimpse into the expected financial performance of the company.
However, it's worth noting that PYPL's stock price has experienced some decline recently. Since the last quarterly report on June 30, 2023, the stock price has decreased by 3.8%. On a year-over-year basis, the stock is down by 33.4%. During this period, PYPL has trailed the S&P 500, which has experienced a 14.1% decline. These figures highlight the challenges that PayPal has faced in the market over the past year.
Mizuho analyst Dan Dolev, who issued the recent note, is ranked by WallStreetZen in the bottom 1% out of 4,329 Wall Street analysts. Dolev has an average return of -8.4% and a 43.2% win rate. The analyst specializes in the Basic Materials and Consumer Cyclical sectors, among others.
PayPal Holdings, Inc. is a global technology platform that facilitates digital payments for merchants and consumers worldwide. The company offers various payment solutions under brands such as PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy. With its payments platform, PayPal enables users to send and receive payments in approximately 200 markets and 100 currencies. Additionally, users can withdraw funds to their bank accounts in 56 currencies and hold balances in their PayPal accounts in 25 currencies. PayPal Holdings, Inc. was established in 1998 and is headquartered in San Jose, California.
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WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.