Market Overview

The Sell Side Reacts To PayPal's Q3 Results


Shares of Paypal Holdings Inc (NASDAQ: PYPL) gained more than eight percent on Friday and traded at fresh 52-week highs after the company reported its third quarter results.

Related Link: PayPal Little Changed On Lukewarm Results, Guidance

Here is a summary of how Wall Street analysts reacted to the earnings print.

Jefferies: Bulls Remain Happy

Jason Kupferberg of Jefferies suggested that Paypal's earnings report reinforced the bullish case for the "must-own" stock.

That stance stems from a solid third quarter earnings report and the company's revenue outlook for the coming three years, which is now higher than previously expected.

The analyst further argued that Paypal has secured the necessary partnerships to enhance its long-term industry leading position without sacrificing margin.

Shares are Buy rated with a $48 price target.

Goldman Sachs: Continued Outperformance Expected

Heath Terry of Goldman Sachs acknowledged that several investor concerns will remain in place, including ongoing competitive uncertainties, near-term margin pressures, and needed investments.

However, Terry suggested that TPV growth from Paypal's platform and a rise in engagement from new product offerings such as One Touch will contribute towards continued outperformance.

Shares remain Buy rated with a price target raised to $49 from a previous $47.

Credit Suisse: Q3 Was OK But Outlook Is Better

Credit Suisse's Paul Condra argued that even though Paypal's third quarter results were "just-OK" and "good enough" the company also presented the bullish case over the next three years.

The analyst sees upside potential coming from share repurchases, better-than-expected margin expansion and accretive M&A activity.

Shares remain Outperform rated with a price target boosted to $47 from a previous $43.

Posted-In: Credit Suisse Goldman Sachs Heath Terry Jason KupferbergAnalyst Color Earnings News Analyst Ratings


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