PayPal Holdings Inc (NASDAQ:PYPL) shares are trading higher Tuesday following positive analyst coverage from Truist Securities.
What Happened: Truist Securities analyst Andrew Jeffrey upgraded PayPal from Hold to Buy and raised the price target from $75 to $95, citing several catalysts ahead of the payment solutions company.
“Even as PayPal seems set to cede some branded share, we submit a rising tide will raise all boats, especially following PYPL’s desultory 2022 stock performance and significant valuation contraction,” Jeffrey wrote in a new note to clients.
Truist sees current revenue estimates as “reasonable” following the company’s 60% decline in 2022. Furthermore, the analyst firm expects the company’s bottom line results to beat consensus estimates in 2023.
Jeffrey noted that a management change could be coming this year, which he views as a positive for the company. New management could free up PayPal to do some more M&A in 2023, he added.
“Stock prices materially reflect company performance versus expectations. In this regard, we see PYPL as materially de-risked,” Jeffrey said.
Related Link: PayPal Touts $6B In Cash, Analyst Expects New Leadership To Prompt Accretive M&A
PYPL Price Action: PayPal has a 52-week high of $196.10 and a 52-week low of $66.39.
The stock was up 4.49% at $74.42 at time of publication, according to Benzinga Pro.
Photo: courtesy of PayPal.
