UPDATE: Daiwa Securities Upgrades PayPal (PYPL) to Buy (2)
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Daiwa Securities analyst Kazuya Nishimura upgraded PayPal (NASDAQ: PYPL) from Outperform (3) to Buy (2) with a price target of $116.00 (from $85.00).
The analyst comments "We lift our investment rating one notch from 3 (Neutral) to 2 (Outperform) and set our 12-month target price at $116 (previously $85). Our new price objective translates to 24.5X our FY23 EPS estimate, or a relative P/E of 1.40X vs. the S&P 500. While visibility for the operating environment remains murky, the significant deterioration of the firm’s earnings prospects since last year seems to have played out. Meanwhile, a number of positive catalysts appear to be falling into place including cost reductions and a commitment to capital returns in collaboration with Elliott Investment Management, the appointment of a new CFO, and the move to hold an Investor Day event early next year. We upgrade to an Outperform stance as we see increased upside risk to the shares leading up to Investor Day."
Shares of PayPal closed at $101.51 yesterday.
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