TD Cowen Increases PayPal (NASDAQ:PYPL) Price Target to $59.00

Key Points

• TD Cowen raised PayPal’s price target from $48 to $59 while maintaining a “Hold” rating; the new target implied roughly 0.22% downside from the stock’s prior close.
• PayPal reported quarterly adjusted EPS of $1.38 versus the $1.28 consensus and revenue of $8.68 billion versus $8.47 billion expected, with revenue up 4.8% year over year.
• Analyst sentiment remains mixed: PayPal has an average “Hold” rating and consensus price target of $56.19, despite several firms recently raising their targets following the earnings beat.

PayPal (NASDAQ:PYPL - Get Free Report) had its price target lifted by research analysts at TD Cowen from $48.00 to $59.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a "hold" rating on the credit services provider's stock. TD Cowen's price target would indicate a potential downside of 0.22% from the stock's previous close.

PYPL has been the topic of a number of other reports. Susquehanna boosted their price target on shares of PayPal from $63.00 to $67.00 and gave the company a "positive" rating in a research report on Wednesday. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $45.00 price objective on shares of PayPal in a report on Wednesday. Clear Str raised PayPal to a "hold" rating in a report on Thursday, July 16th. Morgan Stanley set a $45.00 target price on PayPal in a report on Wednesday. Finally, UBS Group set a $45.00 price target on PayPal in a research report on Wednesday. Nine research analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, PayPal presently has an average rating of "Hold" and an average price target of $56.19.

PayPal Price Performance

Shares of NASDAQ PYPL traded up $0.81 during midday trading on Wednesday, reaching $59.13. 7,316,732 shares of the company traded hands, compared to its average volume of 19,599,029. The firm has a market cap of $52.16 billion, a PE ratio of 11.09, a PEG ratio of 1.40 and a beta of 1.33. The stock's 50-day simple moving average is $46.22 and its 200-day simple moving average is $47.02. PayPal has a 12 month low of $38.46 and a 12 month high of $79.21. 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 (NASDAQ:PYPL - Get Free Report) last issued its earnings results on Tuesday, July 28th. The credit services provider reported $1.38 EPS for the quarter, beating the consensus estimate of $1.28 by $0.10. PayPal had a net margin of 15.00% and a return on equity of 25.02%. The company had revenue of $8.68 billion for the quarter, compared to the consensus estimate of $8.47 billion. During the same quarter in the previous year, the company earned $1.40 EPS. The firm's revenue for the quarter was up 4.8% compared to the same quarter last year. As a group, equities analysts anticipate that PayPal will post 5.32 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Frank Keller sold 4,612 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.54, for a total transaction of $196,194.48. Following the sale, the insider directly owned 41,567 shares of the company's stock, valued at $1,768,260.18. This represents a 9.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Suzan Kereere sold 3,379 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total transaction of $144,587.41. Following the sale, the insider directly owned 30,983 shares in the company, valued at $1,325,762.57. This trade represents a 9.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 8,543 shares of company stock worth $364,325 over the last quarter. 0.63% of the stock is owned by company insiders.

Institutional Investors Weigh In On PayPal

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. lifted its holdings in PayPal by 6.5% in the fourth quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider's stock valued at $5,276,205,000 after buying an additional 5,534,462 shares during the period. Rule One Partners LLC acquired a new stake in PayPal during the 4th quarter worth $2,043,000. Step Capital Management Pte. Ltd. bought a new stake in shares of PayPal during the 4th quarter valued at $6,130,000. Swiss National Bank raised its position in shares of PayPal by 4.9% during the 1st quarter. Swiss National Bank now owns 2,608,600 shares of the credit services provider's stock valued at $117,987,000 after acquiring an additional 121,400 shares during the last quarter. Finally, Easterly Investment Partners LLC lifted its stake in shares of PayPal by 705.2% in the 4th quarter. Easterly Investment Partners LLC now owns 100,651 shares of the credit services provider's stock valued at $5,876,000 after purchasing an additional 88,151 shares during the period. 68.32% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting PayPal

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Q2 beat and higher outlook: PayPal reported adjusted earnings of $1.38 per share versus the $1.28 consensus and revenue of $8.68 billion versus $8.47 billion expected. Revenue rose 4.8% year over year, while management raised 2026 adjusted EPS guidance to approximately $5.38 and increased its transaction-margin outlook. PayPal Reports Second Quarter 2026 Results
• Positive Sentiment: Turnaround indicators improved: Total payment volume grew 10% to $486.4 billion, transactions increased 8% to 6.8 billion, and the company highlighted stabilization in branded checkout, continued Venmo expansion and cost-saving initiatives. PayPal also generated $1.8 billion in free cash flow and repurchased about $1.5 billion of stock. PayPal's Q2 Earnings Call Focuses on Checkout Stability
• Positive Sentiment: Some analysts raised targets: Keefe, Bruyette & Woods increased its target to $70 and upgraded PayPal to Outperform. Mizuho and Citi also raised targets to $60 and $61, respectively, following the earnings report. Analysts Boost PayPal Forecasts
• Neutral Sentiment: Takeover interest remains a catalyst: Stripe and Advent International reportedly offered $60.50 per share, valuing PayPal at roughly $53 billion. The board viewed the offer as too low, while CEO Enrique Lores left the door open to a higher bid but emphasized the standalone turnaround. PayPal Becomes a Takeover Target
• Negative Sentiment: Execution and valuation concerns persist: GAAP earnings declined year over year, investment spending pressured margins, and some coverage characterized third-quarter guidance as soft. Wolfe Research, Needham, Canaccord and others maintained Hold or neutral ratings; Wells Fargo set a $56 target, below the recent trading level. Analysts continue to await stronger branded-checkout momentum and evidence that cost cuts can be delivered. PayPal Q2 Analyst Rating

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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