PYPL Stock On Track To Reverse 3 Weeks Of Gains: Analyst Says Turnaround Story Will Take Time

(MENAFN- AsiaNet News)

• The revised target implies a downside of nearly 21% from the stock's last close.
• Evercore noted that PayPal's results were largely in line with expectations and its short-term outlook, adding that this reminded investors that while the company has potential, it will take time to unlock. 
• The firm posted its third-quarter earnings on Tuesday, with revenue up 2% to $8.58 billion, missing analysts' estimates of $8.71 billion.

Shares of PayPal Holdings Inc. (PYPL) are headed for a week in red, on track to reverse three weeks of gains, shortly after posting its slowest quarterly net revenue growth of the year.

The firm posted its third-quarter earnings on Tuesday, with revenue rising just 2% to $8.58 billion, missing analysts' estimates of $8.71 billion, according to Koyfin.

However, Evercore ISI raised PayPal's price target to $45 from $40 and maintained an 'In Line' rating on the shares after the quarterly results. The revised target implies a downside of nearly 21% from the stock's last close. 

Analyst Rationale On PYPL

Evercore noted that PayPal's results were largely in line with expectations and the short-term outlook. The analyst said this reminded investors that while the company has potential, it will take time to unlock. 

The firm said PayPal's technology fix is still a multi-year process, and that growth will need to be funded through incentives and marketing spend, noting that expenses will likely fluctuate. These factors point to a longer-dated fundamental turnaround story, it said. 

Evercore also noted that outside of mergers and acquisitions headlines and speculation, it finds it hard to see a scenario where shares can move materially and sustainably higher on the current fundamental trajectory.

PYPL Stock: Retail Stance

On Stocktwits, retail sentiment around PYPL stock improved from 'bullish' to 'extremely bullish' over 24 hours. 

One user said,“$PYPL Its a wonderful thing to behold. Paypal's ability to grow revenue come what may, with the consumer stretched as its ever been.”

Another user said,“$PYPL wow this is not even buybacks. It will climb even more when buybacks start back.”

A third user said,“$PYPL solid company! I like this cash machine.”

PYPL stock is down about 3% in 2026. 

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