PayPal (NASDAQ:PYPL) Given New $70.00 Price Target at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods raised PayPal’s price target from $55 to $70 and maintained an “outperform” rating, implying about 20% upside from the prior close.
• PayPal exceeded quarterly expectations with $1.38 adjusted EPS versus $1.28 expected and $8.68 billion in revenue versus $8.47 billion forecast; revenue increased 4.8% year over year.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and average price target of $54.96, as concerns persist over branded-checkout growth, margins, competition and the company’s turnaround execution.

PayPal (NASDAQ:PYPL - Get Free Report) had its price objective increased by Keefe, Bruyette & Woods from $55.00 to $70.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm currently has an "outperform" rating on the credit services provider's stock. Keefe, Bruyette & Woods' price target would indicate a potential upside of 20.03% from the company's previous close.

A number of other research firms have also recently weighed in on PYPL. Jefferies Financial Group raised shares of PayPal from a "hold" rating to a "buy" rating in a research note on Tuesday. Robert W. Baird raised their price objective on PayPal from $50.00 to $57.00 and gave the company a "neutral" rating in a report on Wednesday. TD Cowen upgraded PayPal from a "hold" rating to a "buy" rating in a research report on Friday. Loop Capital began coverage on PayPal in a report on Tuesday, March 31st. They issued a "hold" rating and a $46.00 target price for the company. Finally, Truist Financial upgraded PayPal from a "sell" rating to a "hold" rating and increased their target price for the company from $44.00 to $57.00 in a research report on Friday, July 24th. Ten research analysts have rated the stock with a Buy rating, thirty-three have given a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $54.96.

PayPal Trading Up 4.0%

Shares of PYPL opened at $58.32 on Wednesday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.26 and a current ratio of 1.26. PayPal has a 52-week low of $38.46 and a 52-week high of $79.21. The firm has a market cap of $51.44 billion, a price-to-earnings ratio of 10.94, a PEG ratio of 1.40 and a beta of 1.33. The business's fifty day moving average is $46.22 and its 200-day moving average is $47.02.

PayPal (NASDAQ:PYPL - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.28 by $0.10. The business had revenue of $8.68 billion during the quarter, compared to the consensus estimate of $8.47 billion. PayPal had a return on equity of 25.02% and a net margin of 15.00%.PayPal's revenue for the quarter was up 4.8% on a year-over-year basis. During the same period in the prior year, the company earned $1.40 EPS. Equities analysts anticipate that PayPal will post 5.32 EPS for the current fiscal year.

Insider Buying and Selling at PayPal

In related news, insider Suzan Kereere sold 3,379 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $42.79, for a total value of $144,587.41. Following the completion of the sale, the insider directly owned 30,983 shares in the company, valued at $1,325,762.57. This represents a 9.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Keller sold 4,612 shares of the firm's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $42.54, for a total value of $196,194.48. Following the transaction, the insider directly owned 41,567 shares of the company's stock, valued at approximately $1,768,260.18. This represents a 9.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 8,543 shares of company stock worth $364,325. 0.63% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PayPal

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Maia Wealth LLC raised its holdings in PayPal by 2.5% during the 3rd quarter. Maia Wealth LLC now owns 6,404 shares of the credit services provider's stock worth $424,000 after purchasing an additional 155 shares during the last quarter. GeoWealth Management LLC boosted its stake in shares of PayPal by 6.2% in the 3rd quarter. GeoWealth Management LLC now owns 3,214 shares of the credit services provider's stock valued at $216,000 after purchasing an additional 188 shares during the last quarter. Formidable Asset Management LLC boosted its stake in shares of PayPal by 0.8% in the 1st quarter. Formidable Asset Management LLC now owns 25,937 shares of the credit services provider's stock valued at $1,173,000 after purchasing an additional 205 shares during the last quarter. KPP Advisory Services LLC increased its position in shares of PayPal by 3.3% during the first quarter. KPP Advisory Services LLC now owns 6,625 shares of the credit services provider's stock worth $300,000 after buying an additional 214 shares during the period. Finally, Leo Wealth LLC increased its position in shares of PayPal by 6.8% during the fourth quarter. Leo Wealth LLC now owns 3,564 shares of the credit services provider's stock worth $208,000 after buying an additional 227 shares during the period. 68.32% of the stock is owned by institutional investors and hedge funds.

More PayPal News

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Q2 earnings beat expectations: PayPal reported adjusted EPS of $1.38 versus the $1.28 consensus and revenue of $8.68 billion versus estimates of $8.47 billion. Revenue rose 4.8% year over year, supported by growth at Venmo and Braintree. PayPal's Q2 Earnings Beat Estimates on TPV & Revenue Growth
• Positive Sentiment: Improved outlook and operating momentum: Management raised its 2026 adjusted EPS forecast to $5.38 and increased transaction-margin guidance. Total payment volume climbed 10% to $486.4 billion, transactions rose 8%, and PayPal generated $1.8 billion in free cash flow while repurchasing approximately $1.5 billion of stock. PayPal presses on with turnaround as sale questions linger
• Positive Sentiment: Takeover premium remains in focus: Stripe and Advent International reportedly offered $60.50 per share, valuing PayPal at roughly $53 billion. The board reportedly viewed the offer as too low, while CEO Enrique Lores left the door open to a higher bid. This supports investor hopes for either a sweetened offer or a stronger standalone recovery. Once high-flying PayPal becomes a takeover target
• Neutral Sentiment: Turnaround execution is still being tested: PayPal is investing in checkout modernization, artificial-intelligence tools, digital identity and stablecoins. Management says the strategic reorganization is progressing, but investors are waiting for stronger branded-checkout growth and evidence that cost savings can improve profitability.
• Negative Sentiment: Margin and near-term growth concerns remain: Higher investment spending pressured margins, GAAP profit declined year over year, and some reports characterized third-quarter guidance as soft. Analysts have largely retained Hold ratings because competitive pressure and limited branded-checkout momentum could restrain the recovery. X’s new Visa-supported X Money service also adds another competitive threat in digital payments. PayPal delivers Q2 earnings beat with soft Q3 guidance

About PayPal

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal's platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal's portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree's developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.

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