PayPal: Too Cheap To Miss Out

Summary:

  • PayPal’s robust financial performance, improved guidance, and strategic partnerships support a ‘Strong buy’ rating with an 83% upside potential.
  • Key partnerships with Shopify, Fiserv, and Adyen, along with new features like Fastlane and Venmo’s ENS integration, enhance PayPal’s growth prospects.
  • Valuation analysis via DCF and P/E ratios indicates PYPL is undervalued, with a fair share price estimate of $126.
  • Economic recession risks and competition from tech giants like Apple and Google are potential challenges but do not outweigh PayPal’s strong growth prospects.

PayPal Holdings branch in Luxembourg

Alexandros Michailidis

Introduction

I had a ‘Strong Buy’ thesis for PayPal’s (NASDAQ:PYPL) (NEOE:PYPL:CA) stock in June. The recommendation keeps up well because the stock gained 3.5%, compared to +2.8% from the S&P 500.

The company’s recent financial performance is


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.

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.


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