PayPal Holdings, Inc. (PYPL) Offers Upside, but Analysts Aren't Fully Convinced

PayPal Holdings, Inc. (NASDAQ:PYPL) is among the ridiculously cheap stocks to buy now. As of December 26, PayPal Holdings, Inc. (NASDAQ:PYPL) has mixed analyst ratings, with 37% recommending buying the stock, 52% keeping a neutral stance, and the remaining 11% bearish on the stock. While the median price target of $75 reflects an upside potential of 25.06%, the highest and lowest price targets translate to an upside potential of 75.09% and a downside potential of 14.96%.

On December 22, Mizuho trimmed the price target on the company to $75 from $84 and maintained an ‘Outperform’ rating. The revised price target, in line with the consensus estimate, is driven by the firm’s model and a readjustment of targets for the payments, processors, and IT services group to better reflect earlier macroeconomic data points and management commentary at investor conferences.

Earlier, during a fireside chat on December 3, PayPal Holdings, Inc. (NASDAQ:PYPL)’s CFO had highlighted that Q4 branded checkout growth would be “at least a couple of points slower,” in contrast to that of Q3. Mizuho has now factored these remarks into its estimates, lowering its fourth-quarter branded growth forecast to around 1% from approximately 4%. The firm also reduced its guidance for Pay with Venmo growth to 40% YoY from 45%. That said, Mizuho projects transaction margin dollar growth of 2%, down from earlier 5% guidance, yet remains within the company’s 2%-5% growth guidance range.

PayPal Holdings, Inc. (NASDAQ:PYPL) is a California-based company that operates a technology platform that facilitates digital payments for consumers and merchants. Founded in 1998, the company is committed to democratizing financial services.

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