PayPal (PYPL) PT Raised to 'Street High' $350 at Mizuho Securities on Surging Bitcoin Volumes

Mizuho Securities analyst Dan Dolev raised the price target on PayPal (NASDAQ: PYPL) to a 'Street High' $350.00 (from $290.00) while maintaining a Buy rating on surging Bitcoin volumes.

Dolev sees $2 billion, or about 10%, potential upside to previous 2023 adj. net revenue estimate due to Bitcoin.

"Both our survey and management commentary unveil a dramatic increase in engagement due to crypto," Dolev commented. "As evidence, PayPal recently said that 50% of its crypto users are opening the PayPal app daily."

The firm estimate the potential impact of Bitcoin across US PayPal, Venmo and PayPal's international users. Specifically, they see the following drivers of incremental Bitcoin revenue:

• US PayPal: We estimate that PayPal will have approximately 140mn users in the US by 2023. At $5 revenue per user, we see about $650-700mn of incremental revenue from Bitcoin.
• Venmo: For Venmo, we estimate that the expected 30mn unique users by 2023 (i.e., those without a PayPal App account) could drive $100-150mn of incremental 2023 revenue.
• International PayPal: PayPal also plans to open crypto trading to international PayPal users. Here, we see $1bn of net revenue potential by 2023, implying ~5% upside to our prior estimate.

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