From Financial Modeling Prep: 2024-12-09 08:55:00

PayPal (NASDAQ:PYPL) stocks surged over 2% pre-market following a Buy rating upgrade from BofA Securities, with a new price target of $103. The company’s turnaround efforts under new leadership have shown promising progress, with potential TP growth acceleration by 2025 and positive e-commerce spending trends during the holidays.

BofA Securities highlighted PayPal’s strong free cash flow generation, ongoing share buybacks, and an upcoming Investor Day in February as catalysts for positive sentiment. The firm noted that modest improvements in branded TPV growth may not be fully reflected in the current valuation, making PayPal an attractive investment opportunity.

Many large institutional investors still maintain underweight positions in PayPal, indicating room for improved sentiment. With signs of growth and operational efficiency, PayPal is positioned for a stronger performance in the future. The company’s focus on TP growth and strategic initiatives bode well for its long-term outlook.



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