Takeaways From Fireside Chat with PayPal's (PYPL) Venmo Chief - BofA Securities

BofA Securities analyst Jason Kupferberg reiterated a Buy rating and $323.00 price target on PayPal (NASDAQ: PYPL) after hosting a virtual fireside chat with Darrell Esch, the Head of Venmo at PayPal, at the BofA Electronic Payments Symposium.

The analyst stated "The company plans to bring more features and functions to the Venmo app/wallet during 2021, than in Venmo’s prior 11-year history including the Venmo credit card (now broadly available to the Venmo user base), the ability for users to buy/sell/hold crypto in the Venmo app (available in the next few months, expected to appeal to the Venmo demographic), and Business Profiles (enabling small businesses to create a Venmo account), which went live in February. Additionally, the Venmo app is in the process of being re-designed to support these new features, will go live in early 3Q. Stock trading, high yield savings accounts and budgeting tools will also be introduced to the Venmo app over time. We expect these new products and features will drive continued strong growth in Venmo users (which are expected to grow faster than the 15% CAGR for overall PayPal in the company’s 5-year guidance), while we expect average revenue per user (ARPU) will grow at a faster pace than the Venmo user base. Of note, ~50% of Venmo users are also active PYPL users." "We calculate our price objective of $323 using a blend of 50x our 2022 non-GAAP EPS estimate and our DCF analysis."

For an analyst ratings summary and ratings history on PayPal click here. For more ratings news on PayPal click here.

Shares of PayPal closed at $247.19 yesterday.

You May Also Be Interested In

• Stripe, Advent In Talks To Buy Paypal - WSJ
• York Space Systems (YSS) PT Lowered to $15 at Jefferies
• Deutsche Bank Downgrades Netskope (NTSK) to Hold on Valuation