What happened
The stock of PayPal Holdings (PYPL -3.20%) was such a popular item on Wednesday, it even soared past the high-flying S&P 500 index on an excellent day for equities. The fintech rose by over 7% after a pair of analysts reiterated their bullish cases for buying the stock.
So what
Following a period of decline for PayPal stock, prognosticators Bryan Keane of Deutsche Bank (DB -0.17%) and MoffettNathanson's Lisa Ellis both weighed in on what they consider to be the company's excellent prospects.
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In a client memo, Ellis wrote that she believes the stock is very attractively priced, and that she "[sees] upside from the strong U.S. eBay growth (27% in 4Q21), a macro recovery in China and other international markets, and the rollout of new services, including [buy now, pay later], crypto investing, and bill payment."
Ellis is maintaining her buy recommendation on PayPal stock, at a $190 share price target.
Keane is also holding fast, with a buy tag at a slightly higher $200 level.
The analyst reiterated his view after meeting with PayPal's chief financial officer, John Rainey, and another company official. Following this, Keane wrote, "Beyond new product initiatives, PYPL also stands to benefit from expanding into China later in the year (catalyst for [full year 2023]) as well as through increased omni-channel capabilities as it integrates card based solutions and Zettle."
Zettle by PayPal is its point-of-sale solution; its maker was bought by PayPal in 2018.
Now what
PayPal had been battered by several headwinds, not least of which was the recent investor turn away from tech stocks, and titles heavily associated with that sector. Optimism is returning to that class generally, and since PayPal remains quite a solid and well-performing company, investors and piling back into it specifically.
