KeyBanc on PayPal (PYPL): 'Expect Solid 4Q Print, but "Achievable" FY25 Guide That Could Disappoint Bulls'

KeyBanc analyst Alex Markgraff reiterated a Sector Weight rating on PayPal (NASDAQ: PYPL).

The analyst commented: "Expect Solid 4Q Print, but 'Achievable' FY25 Guide That Could Disappoint Bulls; We anticipate solid 4Q24 results from PYPL next week on the heels of positive bank earnings data (link), a healthy holiday spend period, and Company commentary from late 4Q24 (link). We are however cautious on the outlook as we anticipate initial formal FY25 transaction margin dollar growth guidance to remain in the MSD range in the spirit of conservatism and contemplating recent FX movements that present more of a headwind than previously anticipated, which is below the bullish camp vying for something closer to HSD transaction margin dollar growth. Except for interest in Branded checkout performance during the holiday period, focus is likely to quickly turn to FY25 guidance and expectations around the upcoming investor day (2/25). PYPL shares have traded +5.7% YTD vs. the Nasdaq +0.2%. We'd expect shares could trade lower post-print if the above scenario plays out. Remain SW."

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 $90.24 yesterday.

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