PayPal (PYPL) PT Raised to $98 at Citi

Citi analyst Ashwin Shirvaikar raised the price target on PayPal (NASDAQ: PYPL) to $98.00 (from $97.00) while maintaining a Buy rating.

The analyst comments "PYPL declined ~13% following 4Q results – see details. Narratives shifted throughout the day, but primary culprits include: (1) Impression that U.S. branded volume growth was at a lower run rate than previously thought; (2) Questions regarding international branded checkout competitiveness, particularly given higher contribution to transaction margin; (3) Impact/timing of Braintree rationalization; (4) Raised bar for volumes following V/MA results. While the branded checkout burden of proof has increased, the company’s trajectory is unaltered – and the 2025 underlying transaction margin dollar growth and EPS trajectory is better than our forecast, with a highly credible (beatable) outlook. The bar is now lower (for PYPL and other companies yet to report), which offers a better set up into the Feb 25th analyst day with opportunity to offer clarity and highlight medium-term building blocks of improvement. Investors likely look for progress towards these objectives, but it should set a good foundation. Buy PYPL."

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