Anyone interested in locking down a short-term investment return approaching 30% would do well to plonk down some money on Paypal (PYPL +5.06%) stock.
That's if you believe one analyst who reduced his price target for the company even though he's still bullish on the stock overall. Let's explore what's going on here.
Not exactly a deep cut
On Tuesday, Paul Golding of Macquarie shaved $2 from his Paypal price target, bringing it down slightly to $75. That's still 26% higher than where the stock trades as of this writing, so Golding continues to believe it has much potential. Despite the haircut, Golding firmly maintained his recommendation of outperform (or buy) on the fintech stock.
Paypal grew to prominence when it was owned and operated by e-commerce veteran eBay. Interestingly, as eBay has faded somewhat in prominence over the years, PayPal has risen as a major player in the next-generation payments world.
Golding's slight price cut was due to what he termed management's "muted outlook" for the company's all-important transaction margins for the rest of this year. Yet the analyst is clearly encouraged by Paypal's numerous current and potential revenue streams.
NASDAQ: PYPL
Key Data Points
Paypal bulls aren't hard to find
For the most part, recent analyst takes on Paypal are neutral to favorable. That "muted" quality Golding wrote about could be reflected in per-share earnings, which in the consensus analyst view are expected to dip slightly this fiscal year compared to 2023. Growth should pick up in fiscal 2025, though, with an expected year-over-year rise of almost 10%.
Those analysts are expecting a smoother upward ride with revenue. Collectively, they're modeling nearly 7% top-line growth for this fiscal year, bumping a bit higher to almost 8% in the next one.
