PayPal: Near Doubling Upside Still Possible (Reiterate Buy)

Summary:

• PayPal’s robust YTD performance underscores its successful transformation cadence, as observed in the growing active users and improved bottom-lines.
• If anything, we expect the management to deliver an outsized FY2024 performance while offering a promising FY2025 guidance.
• Its long-term prospects appear to be excellent as well, with Braintree already bottom-line accretive and the management forging strategic partnerships with leading global commerce players.
• Readers must also note that PYPL is inherently discounted at current levels, with there remaining a near doubling upside potential to our bull-case long-term price target.

PYPL Is Inherently Undervalued – Offering Opportunistic Investors With The Dual Pronged Returns

We previously covered PayPal Holdings, Inc. (NASDAQ:PYPL) in August 2024, discussing its promising FQ2’24 performance metrics, raised FY2024 guidance, and improved monetization

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.