PayPal (PYPL) Investor Day was Positive but not Enough to Meet High Expectations, UBS
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UBS analyst Saul Martinez reiterated a Neutral rating and $270.00 price target on PayPal (NASDAQ: PYPL) after attending the company's investor day where it highlighted the strategy of becoming a "super-app" for merchants/consumers and expressed confidence that its vast breadth of offerings will help accelerate both top and bottom line growth over the next 5 years.
The analyst reiterated the Neutral rating, stating "the bar was high coming into the Investor Day, as evidenced by the stock selling off from +4-5% to flattish once the new 5 year targets were announced. 1) What is the status of new product rollouts? 2020 new product rollouts like BNPL, QR Codes, and Bitcoin are scaling fast and performing ahead of expectations. The company also expects to accelerate its pace of new product rollouts in 2021 and beyond. 2) Will PYPL be able to increase customer engagement? PYPL expects to double its active users to 750M in 5 years (UBS 2025E active users: 655M). Additionally, increased customer engagement should also result in higher average revenue per user and lower churn rates."
Shares of PayPal closed at $291.40 yesterday.
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