PayPal Holdings Inc Upgraded by Wolfe Research

Investing.com — Wolfe Research upgraded PayPal Holdings Inc (NASDAQ:PYPL) to "outperform" from "peer perform" and raised its price target to $107, citing growth opportunities and operating leverage.

The brokerage highlighted PayPal’s large user base of 220 million monthly active users as a key asset. They noted that PayPal's recent focus on monetizing its Venmo and PayPal debit cards, along with improving branded checkout experiences, is a significant driver for future growth.

> “Heading into 2025, we see room for upside given the potential to deliver a cadence of beat-and-raises as PYPL executes on its branded checkout innovations, pricing to value on Braintree, and Venmo monetization,” the analyst wrote.

PayPal’s February 2025 Investor Day is expected to outline a path to high single-digit gross profit growth in 2026. Wolfe projects adjusted earnings per share of $5.61 for 2026, which exceeds the Street's estimate of $5.44.

The brokerage believes that the company's cost management efforts and innovations, such as the PayPal Everywhere campaign and upgraded checkout integrations, will support long-term profitability. Notably, PayPal’s shares are up 46% year-to-date, outperforming the S&P 500.