Following Q3 Results, PayPal’s Path To $96 Is Clear

Summary:

  • PYPL’s technical target is revised to $96 by year-end, supported by recent earnings momentum and alignment with key Fibonacci levels.
  • PayPal’s transaction volume grew by 1.47 billion from Q1 2022 to Q3 2024, showing stable user growth and engagement.
  • EPS increased 146% from Q1 2022 to Q3 2024, reflecting effective cost management and improved profitability margins.
  • The forward price-to-sales ratio of 2.5 is 58.52% below its five-year average, highlighting significant undervaluation potential.
  • Non-GAAP operating income grew by 18% YoY in Q3 2024, despite a slight revenue growth deceleration to 6%.

PayPal Headquarters San Jose

JasonDoiy

Investment Thesis

Since our last coverage, PayPal Holdings, Inc. (NASDAQ:PYPL) has appreciated by 11%, surpassing our prior short-term target of $80. We revise our year-end technical target to $96 in light of continued fundamental improvements. Further supporting its bullish case, PayPal’s forward


Analyst’s Disclosure: I/we have a beneficial long position in the shares of PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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