PayPal upgraded to Buy at Argus amid ‘steady progress’ in turnaround plan
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Justin Sullivan
Argus upgraded PayPal Holdings (NASDAQ:PYPL) to Buy from Hold after the payment tech company’s Q2 earnings demonstrated steady progress in its turnaround efforts.
On Tuesday, PayPal (PYPL) boosted its 2024 earnings guidance after posting Q2 earnings that topped the consensus estimate.
The company’s stock gained 3.4% in early Wednesday trading.
Efforts to re-ignite growth are proceeding faster than originally expected, Argus analyst Stephen Biggar said.
“We view the company as making steady progress on its turnaround plan, which includes a new CEO and CFO, improved on-line checkout experiences, and revived growth from Venmo,” he wrote in a note to clients.
PayPal’s (PYPL) active accounts increased to 429M at June 30, 2024, up from 426M at the end of 2023. And the company has revised its market strategy to focus more on existing users than on attracting new ones, he notes.
“In our view, the company has several competitive advantages as it seeks to grow payment volumes. These include a strong international presence, with 100M non-U.S. users in more than 200 countries,” Biggar said.
Argus’s Buy rating on PayPal (PYPL) contrasts with the SA Quant rating of Hold and aligns with the average SA Analyst rating and the average Wall Street rating, both at Buy.