PayPal Analysts Highlight Macros Which Are Likely Affecting Payment Volumes In Near-Term, Cut Price Targets - PayPal Holdings (NASDAQ:PYPL)

Needham analyst Mayank Tandon maintained a Hold on PayPal Holdings Inc PYPL.
Tandon hails PYPL's solid 3Q results and management's cost-saving efforts, which helped drive operating margins 200 bps above his estimate.
While cost efficiency is helping improve profitability, the 4Q revenue outlook is below consensus due to FX headwinds and mixed e-commerce volumes.
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In addition, the choppy macro backdrop continues to pressure payment volumes, which will likely weigh on NT revenue growth.
RBC Capital analyst Daniel Perlin reiterated Market Perform and the $118 price target.
Perlin highlighted how cost management drove the EPS with TPV affected by FX, while OVAS delivered the revenue upside.
However, despite the above, the e-commerce slowdown affected growth while holiday ramp expectations are due, leading to a cautious outlook.
Raymond James analyst John Davis reiterated Outperform and cut the price target from $123 to $107.
Davis noted the mixed 3Q results and disappointing 4Q guidance.
He expects the outlook to prove conservative outside of a significant near-term slowdown.
With EPS mainly likely unchanged, he continues to believe estimates are biased higher in a variety of macro scenarios and see PYPL as a solid defensive play (secular growth, FCF generation, clean balance sheet) in a volatile environment.
Morgan Stanley analyst James Faucette remained Overweight with a $136 price target.
He highlighted the modest adjusted EPS growth as soft e-commerce trends offset faster margin gains.
PYPL is still well positioned to outpace underlying eCommerce, while higher rates and more limited capital availability make it an okay time to expand margins.
Price Action: PYPL shares traded lower by 5.23% at $72.55 on the last check Friday.

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