Cantor Raises Price Target For Paypal Holdings Inc (PYPL) Amid 2Q:16 Results
In a research report issued Friday, Cantor analyst Youssef Squali reiterated a Buy rating on shares of Paypal Holdings Inc (NASDAQ:PYPL), while slightly raising the price target to $48 (from $46), after the payment giant released its second-quarter results. However, Paypal shares are currently trading down 8% to $36.98.
Squali wrote, “PayPal delivered strong 2Q results, which exceeded consensus estimates, driven by robust growth in TPV and in key metrics, including active users and engagement. The company also announced a much-anticipated strategic partnership with Visa, which we view as a net positive longer-term, even though it’s likely to drive transaction costs higher shorter-term. We believe this deal could turn an often-acrimonious relationship between Paypal and Visa/card issuers into a beneficial one for all, as it opens opportunities for PYPL at the point-of-sale, yields volume-based economic incentives and provides long-term Visa fee certainty.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a yearly average return of 15.2% and a 71.0% success rate. Squali has a 8.7% average return when recommending PYPL, and is ranked #5 out of 4075 analysts.
Out of the 39 analysts polled by TipRanks, 21 rate Paypal Holdings Inc stock a Buy, 15 rate the stock a Hold and 3 recommend Sell. With a return potential of 6.5%, the stock’s consensus target price stands at $42.74.